Gross Payment Status
Gross payment applies to subcontractors who fall under the construction industry scheme (CIS). To apply for gross payments under CIS your business must comply with the following rules.
- Carryout construction works in the UK and run through a bank account
- Have a construction turnover
- Comply with all its tax rules
Before HMRC grants gross payment status your business must pass three tests. These include:
- A business test
- A turnover test
- A compliance test
Gaining gross payment status allows subcontractors get paid without any deductions. It is an extremely popular initiative amongst subcontractors.
