Regulation 51 Inspection of records of contractors and sub-contractorsI1
United Kingdom
Whenever required to do so by a person nominated by the Commissioners for Her Majesty’s Revenue and Customs, a contractor must produce to that person all contractor records, or such contractor records as may be specified by that person, for inspection at the prescribed place and at such time as that person may reasonably require.
“Contractor records” means all documents and records relating to—
the calculation and payment of sums paid by the contractor to sub-contractors (or their nominees) under contracts relating to construction operations, and
the deductions made from such sums required under section 61 of the Act,
in the tax years or tax periods specified by the nominated person.
Whenever required to do so by a person nominated by the Commissioners for Her Majesty’s Revenue and Customs, a person who is or has within the preceding three tax years been a sub-contractor must produce to that person all sub-contractor records, or such sub-contractor records as may be specified by that person, for inspection at the prescribed place and at such time as that person may reasonably require.
“Sub-contractor records” means all documents and records relating to—
the calculation or payment of sums paid to the sub-contractor pursuant to any contract relating to construction operations under which he is or was a sub-contractor within the previous three years, and
the direct cost of materials relating to any such contract.
“The prescribed place” means such place in the United Kingdom as the contractor or sub-contractor and the nominated person may agree upon, or in the absence of agreement—
the place in the United Kingdom at which the contractor records or sub-contractor records are normally kept, or
if there is no such place, the contractor’s or sub-contractor’s principal place of business in the United Kingdom.
The nominated person may—
take copies of, or make extracts from, any document produced for inspection in accordance with paragraph (1) or (3);
remove any document so produced if it appears to the nominated person to be necessary to do so, at a reasonable time and for a reasonable period.
If any document is removed in accordance with paragraph (6)(b), the nominated person must provide—
a receipt for the document, and
a copy of the document, free of charge, to the person by whom it was produced or caused to be produced, within seven days of that person requesting a copy, if the document is reasonably required for the proper conduct of a business.
If a lien is claimed on a document produced in accordance with paragraph (1) or (3), the removal of the document under paragraph (6)(b) is not to be regarded as breaking the lien.
If records are maintained by computer, the person required to make them available for inspection must provide the nominated person with all facilities necessary for obtaining information from them.
For the purposes of this regulation, a contractor and a sub-contractor must keep, for not less than three years after the end of the tax year to which they relate, all contractor records or sub-contractor records as the case may be which are not required to be sent to the Commissioners for Her Majesty’s Revenue and Customs by other provisions of these Regulations.