# The Income Tax (Construction Industry Scheme) Regulations 2005, Regulation 6: Verification etc of registration status of sub-contractor and nominee

Extent: E+W+S+N.I.

(1) A contractor must verify with the Commissioners for Her Majesty’s Revenue and Customs whether a person to whom he is proposing to make—
(a) a contract payment, or
(b) a payment which would be a contract payment but for section 60(4) of the Act (contract payments:exceptions),
and, where that person has appointed a nominee, his nominee, are registered for gross payment, for payment under deduction or is not registered under Chapter 3 of the Act.This is subject to paragraph (3).
(2) For the purpose of verification the contractor must provide—
(a) his name, unique taxpayer reference (UTR), accounts office reference and employer’s reference, and
(b) in relation to the person to whom he is proposing to make the payment and, where that person has appointed a nominee, his nominee—
(i) if that person or nominee is an individual, his name, unique taxpayer reference (UTR) and national insurance number;
(ii) if that person or nominee is a partner in a firm, the name of the firm and that partner, the unique taxpayer reference (UTR) of the firm, and if the partner is an individual his unique taxpayer reference (UTR) or national insurance number or if the partner is a company the unique taxpayer reference (UTR) or the company registration number;
(iii) if that person or nominee is a company, the name of the company, unique taxpayer reference (UTR) and the company registration number.
(3) A contractor may not verify under paragraph (1) unless the contractor has a contract with the sub-contractor or has formally accepted a tender for work under a contract.
(4) A contractor need not verify if—
(a) the person to whom he is proposing to make the payment has been included in a return under regulation 4 in the current or previous two tax years;
(b) the payment is made within two years of the appointed day, if the person to whom he is proposing to make the payment has been included in a return under regulation 4 or a return under regulation 40A of the Income Tax (Sub-contractors in the Construction Industry) Regulations 1993 for the current or previous two years;
(c) the contractor is a company and the person to whom he is proposing to make the payment has been included in a return under regulation 4 or a return under regulation 40A of the Income Tax (Sub-contractors in the Construction Industry) Regulations 1993 for the current or previous two tax years made by another company in the same group;
(d) the contractor has made an election under regulation 3 and the person to whom he is proposing to make the payment has been included in a return under regulation 4 in the current or previous two years in respect of a different group of sub-contractors in relation to which the contractor is treated as a different contractor;
(e) the contractor acquired the contract under which the payment is to be made in a transfer of a business as a going concern where the transferor was within one of paragraphs (a) to (d) and the contractor has notified the Commissioners for Her Majesty’s Revenue and Customs of the transfer.
(5) For the purposes of paragraph (4)(c) section 413(3)(a) of ICTA applies to determine whether two companies are in the same group.
(6) The Commissioners for Her Majesty’s Revenue and Customs must notify a contractor that—
(a) a person registered for gross payment has become registered for payment under deduction or has ceased to be registered under Chapter 3 of the Act, or
(b) a person registered for payment under deduction has become registered for gross payment or has ceased to be registered under Chapter 3 of the Act,
if a payment to that person has been included in the contractor’s return under regulation 4, or a return under regulation 40A of the Income Tax (Sub-contractors in the Construction Industry) Regulations 1993, in the current or previous two tax years or that person has been verified under paragraph (1) by the contractor in that period.
(7) A contractor is entitled to assume that—
(a) a person verified or notified as being registered for gross payment, or
(b) a person verified or notified as being registered for payment under deduction,
has not subsequently ceased to be so registered.

---
Source: https://www.legislation.gov.uk/uksi/2005/2045/regulation/6 (the official version)
Page: https://openlegislation.uk/income-tax-construction-industry-scheme-regulations-2005/regulation-6
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.