The Income Tax (Sub-contractors in the Construction Industry and Employments) (Amendment) Regulations 2003

Amendment of the Sub-contractors Regulations

7.  After regulation 41 (inspection of records of contractors)(1) insert—

“Inspection of records of sub-contractors – additional provisions

41A.— (1) Where a sum deducted under section 559 is treated as paid on account of the liabilities mentioned in regulation 44B(2), the sub-contractor, whose liabilities they are, shall—

(a) maintain the records specified in paragraph (2); and

(b) produce to an authorised officer of the Board for inspection those records, or such of them as may be specified by him, at such time as he may reasonably require, at the prescribed place.

(2) The records are all documents and records relating to the calculation of—

(a) the amounts which the sub-contractor would have been liable to pay to the collector in the preceding three years, under the provisions mentioned in regulation 44B(2), but for the withholding by a contractor of sums due to him; and

(b) the amounts deducted by a contractor under section 559 which the sub-contractor claims to be entitled to set off against those liabilities.

(3) In this regulation the “prescribed place” means—

(a) such place in the United Kingdom as the subcontractor and the authorised officer may agree upon; or

(b) in default of such agreement, at such place in the United Kingdom where the documents and records mentioned in paragraph (2) are normally kept, or

(c) in default of such agreement and if there is no such place referred to in sub-paragraph (b), the sub-contractor’s principal place of business in the United Kingdom.

(4) The authorised officer may—

(a) take copies of, or make extracts from, any document produced to him for inspection in accordance with paragraph (1)(b); and

(b) remove any document so produced if it appears to him to be necessary to do so, at a reasonable time and for a reasonable period.

(5) Where a lien is claimed on a document produced in accordance with paragraph (1)(b), the removal of the document under paragraph (4)(b) shall not be treated as breaking the lien.

(6) Where records are maintained by computer, the person required to make them available for inspection shall provide the authorised officer with all facilities necessary for obtaining information from them.”.

(1)

There are amendments to regulation 41 which are not relevant for present purposes.