Regulation 6 Amendments to the principal Regulations

After regulation 34 the following regulation shall be inserted—

“Alternative procedure for verification of sub-contractor’s tax certificate held by a partner in a firm

34A

(1)

Where the circumstances specified in paragraph (2) are satisfied, a partner specified in paragraph (3) shall give the document specified in paragraph (4) (in this regulation referred to as the “certification document”) to the contractor.

(2)

The circumstances specified in this paragraph (and which were referred to in regulation 33(1)) are that—

(a)

the contract payment is made to a firm, not being a nominee,

(b)

the payment is due under a contract made in writing between the contractor and the firm,

(c)

the partner has produced the certification document to the contractor,

(d)

subject to paragraph (5), the contractor has no reason to doubt that the information shown on the certification document is correct,

(e)

the date of payment is—

(i)

not earlier than the date shown in the certification document as that from which the certificate is valid, and

(ii)

not later than the date of expiry shown in the certification document, and

(f)

the payment is made into a bank account held in the name of the firm and specified in the certification document (“the nominated account”).

(3)

A partner specified in this paragraph is—

(a)

a partner in the firm referred to in paragraph (2) (“the firm”), and

(b)

one who has notified the inspector of particulars identifying the nominated account.

(4)

The certification document specified in this paragraph is a document on the firm’s headed notepaper, signed by the partner—

(a)

certifying that the partner, in his capacity as a partner in the firm, is the user of a valid sub-contractor’s certificate in the form specified in paragraph (4A) of regulation 24, and

(b)

specifying—

(i)

the name of the partner,

(ii)

the address which is the firm’s main place of business,

(iii)

the distinctive number of the sub-contractor’s tax certificate,

(iv)

the date from which the certificate is valid,

(v)

the date of expiry of the certificate,

(vi)

particulars identifying the nominated account, and

(vii)

where the partner so wishes, the business name or names under which the firm’s business is carried on.

(5)

If the contractor has reason to doubt that the information shown on the certification document is correct, he may, within 14 days of the date of receipt of the certification document from the partner, apply to the inspector for confirmation that—

(a)

a valid sub-contractor’s tax certificate has been issued to the partner, in his capacity as a partner in the firm, to which the payment is to be made, and

(b)

the information shown on the certification document agrees with the records held by the inspector,

and, on receipt of such confirmation, the contractor shall be presumed to have no reason to doubt that the information shown on the certification document is correct”.