The Income Tax (Sub-Contractors in the Construction Industry) (Amendment) Regulations 1990

Multiple contractors4B

1

Where a contractor so elects, he shall be treated for all the purposes of this Part of these Regulations as if in respect of each group of sub-contractors specified in the election he were a different contractor, that is to say, as if each group of sub-contractors constituted all the sub-contractors to whom he makes payments to which the principal section applies.

2

An election under this Regulation must be made by notice in writing to the Inspector and any such notice shall contain—

a

such information as may be necessary to identify the groups of subcontractors concerned, and

b

a certificate that the contractor makes no payment to which the principal section applies other than to sub-contractors in the groups so identified.

3

Subject to paragraph (4), an election shall have effect for the year following that in which it is made and, unless revoked, shall also have effect for any subsequent year.

4

Where a contractor acquires the whole or a part of the undertaking of another contractor and within 90 days of the acquisition elects under this Regulation to be treated as a separate contractor in respect of the group of sub-contractors with whom he contracts for the purposes of the acquired undertaking and in respect of all other sub-contractors to whom he makes payments or, where an election is already in force in respect of them, each group of sub-contractors identified in the existing election, the new election shall have effect for the year in which the acquisition takes place and any subsequent year.

5

An election in force for any year may be revoked by notice in writing to the Inspector and any such revocation shall have effect for the year following that in which notice of it is given and any subsequent year but shall not prejudice the making of a fresh election for that following or any subsequent year.

and, where that rate changes on an operative date within the meaning of the Taxes (Interest Rate) Regulations 1989 6by virtue of those Regulations, the change shall have effect for periods beginning on or after the operative date in relation to interest running from before that date as well as from or from after that date.

8

1

If within 14 days of the end of any income tax month the contractor has paid no amount to the Collector under Regulation 7 for that income tax month, and the Collector is unaware of the amount, if any, which the contractor is liable so to pay, the Collector may give notice to the contractor requiring him to render, within 14 days, a return in the prescribed form showing the amount which the contractor is liable to pay to the Collector under that Regulation in respect of the income tax month in question.

2

Where a notice given by the Collector under paragraph (l) extends to two or more consecutive income tax months, the provisions of these Regulations shall have effect as if those consecutive income tax months were one income tax month.

3

A notice may be given by the Collector under paragraph (I) notwithstanding that an amount has been paid to him by the Contractor under Regulation 7 for an income tax month, if the Collector is not satisfied that the amount so paid is the full amount which the contractor is liable to pay to him for that month, and the provisions of this Regulation shall have effect accordingly.

25

Within 14 days of the end of every income tax month a contractor shall forward to the Commissioners of Inland Revenue at an address specified by them all vouchers given to and obtained by him in accordance with Regulation 23 together with such identifying information as the Commissioners may require.