HMRC have revised leaflet IR40(CIS) Construction Industry Scheme, 'Conditions for getting a subcontractors certificate' in preparation for the new CIS scheme in April 2007.
A tax certificate entitles the holder to be paid gross. Those who cannot make the conditions will hold Registration Cards and receive payments after deduction on account of tax and National Insurance contributions (NICs).
To qualify for a tax certificate, a subcontractor must pass three tests per s.562 to 565 ICTA 1988 (which lays down respectively the conditions for individuals, partners and companies), these are:
The business must be carrying out construction work in the UK or providing labour for such work; run through a bank accoun...