Our Gross Payment Status Services

At Chartergates, we understand the challenges that businesses face in maintaining their Gross Payment Status under the Construction Industry Scheme. HMRC are notoriously vigilant in monitoring compliance, conducting the Tax Treatment Qualification Test (TTQT) at least once every 12 months & for new Gross Payment Status awards, within 6 months of the status being granted. Any discrepancies detected during this assessment can lead to the automatic cancellation of gross payment, putting businesses at risk.

Gross Payment Status at Risk:

Your Gross Payment Status may be at risk under various circumstances, including:

Contractor returns being late on four or more occasions or exceeding 28 days late.
PAYE or CIS payments being overdue on four or more occasions or surpassing 14 days late.
Self-assessment, Corporation Tax or VAT payments exceeding 28 days late.
Outstanding tax of £100 or more due to HMRC during the review.
Late payments of tax by company directors
Late or delayed payments of tax by group companies
Incorrect information or returns relating to PAYE, VAT, Corporation Tax or Income Tax Self-Assessment

Our Gross Payment Service:

Our consultants boast extensive experience in successfully challenging HMRC gross payment cancellations. We have preserved the Gross Payment Status for numerous businesses facing challenges. Our success is attributed to a combination of profound experience, technical knowledge, and a robust and direct approach. We pride ourselves on providing swift advice and representation without compromise.

Protect Your Status:

We understand the severe consequences of losing Gross Payment Status, and we are committed to fighting for you to keep your registration. Our team is prepared to go to great lengths to keep HMRC in check and safeguard your business interests. If your gross payment registration is under threat, don’t hesitate, contact us now.

Our Tax Services & How We Provide Them

Our specialist tax consultancy and representation services can be provided on a fixed-fee basis, an hourly rate, on a retained basis and in some circumstances on a contingency basis. Call us today for a free no obligation consultation with our team about our services which include:

Advice and consultancy on all areas of tax
HMRC enquiry representation
Tax tribunal representation

Contract reviews and drafting
Paper reviews for ongoing disputes

Frequently Asked Questions: Gross Payment Status

How do I qualify for Gross Payment Status under the Construction Industry Scheme?

To qualify for gross payment, your business must pass three HMRC tests: the business test, turnover test, and compliance test. These ensure your business structure, income level (excluding VAT), and tax compliance history meet the requirements for the scheme.

How can I apply for Gross Payment Status?

You can apply for Gross Payment Status when registering for the Construction Industry Scheme via HMRC. You’ll need to provide your bank account details, national insurance number, and other relevant business information, whether you’re a sole trader or operating as a limited company.

Why is Gross Payment Status important for cash flow?

Gross Payment Status means contractors don’t deduct tax before paying subcontractors, which significantly improves cash flow for businesses. This is especially beneficial for contractor and subcontractor relationships in construction projects with tight margins.

What can cause a business to fail its annual review?

During the annual review, HMRC checks for timely submissions of tax returns, corporation tax, PAYE, and VAT payments. Failing the compliance test, such as late payments or incorrect returns, can result in losing your status.

What is the preferred method for managing compliance day to day?

Staying compliant day to day involves accurate tax record-keeping, timely submissions, and regular internal reviews. At Chartergates, we help you establish a preferred method of ongoing compliance to retain your status and stay ahead of HMRC assessments.

Disclaimer: Chartergate Legal Services Ltd has drafted these FAQs to provide a general overview of the relevant law only. These FAQs are not a substitute for professional advice that is specific to your circumstances and should not be relied upon as such.