HMRC conduct regular reviews of Gross Payment Status contractors at least once in every 12 month period. You will automatically lose gross payment status if:

  • any CIS300 returns have been late on four or more occasions;
  • any one contractor return is over 28 days late;
  • any PAYE or CIS payments have been late on four or more occasions;
  • any one PAYE or CIS payment is more than 14 days late;
  • any self-assessment payment is more than 28 days late;
  • any Corporation Tax payment is more than 28 days late, or is outstanding at the date of the review;
  • a P35 is still outstanding at the time of the review;
  • any self-assessment return (income tax or Corporation Tax is outstanding at the time of the review; or
  • any payment of £100 or more due to HMRC is outstanding at the time of the review.

There is a 90 day notice period that must be given by HMRC before Gross Payment Status is revoked and of course you have the right of appeal against the decision. You have 30 days from the date of the letter within which to appeal. You must be able to demonstrate a “reasonable Excuse” to establish a successful appeal.