E5.562 Construction industry scheme—special cases
Debt factoring
Where a subcontractor under the construction industry scheme (CIS) has legally assigned their debt to a factor, the contractor may make a CIS payment to the factor as though they were paying the subcontractor (ie payment gross or under deduction of tax at the rate appropriate to the subcontractor). The normal monthly payment statement must still be completed and sent to the subcontractor1.
Reverse premiums
Reverse premiums arise where a landlord or developer offers an inducement payment to a prospective tenant. These inducements are excluded from the CIS2.
PFI payments
Payments from the public sector under a private finance initiative (PFI) arrangement are excluded from the CIS3.
Group companies
The definition of a group under CIS is the definition within CTA 2010, s 151 (a 75% test)4. Note that although the CIS legislation refers to the ICTA 1988, s 413(3)(a) definition of a group of companies, this would appear to be an orphaned reference as that
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