Apply for CIS gross payment status: CIS302 walkthrough (2026)

Most subcontractors who qualify for gross payment status never bother applying — the form looks fiddly, the rules look unforgiving, and HMRC's own guidance reads like it was written for an officer rather than a builder. None of that is the actual application. The form is short. The rules are specific. And the rejections are nearly all preventable.

This guide walks you through the application HMRC actually wants — which form to fill in, what every meaningful field is asking for, and what HMRC checks behind the scenes before they post a decision. For the eligibility tests themselves, see the pillar guide on how to qualify for CIS gross payment status.

Before you fill anything in

Two checks before you open the form. Both are the kind of thing that's quick to verify and painful to discover halfway through:

1. You're already CIS-registered as a subcontractor. Gross status is an upgrade from the standard 20% rate — not a first-time registration. If you're brand new to CIS, register first via CWF1 / CIS301, work for a couple of months under the 20% rate so HMRC has a record of you, then apply for gross.
2. Your tax record is genuinely clean for the past 12 months. Pull up your last two Self Assessment returns and confirm both were filed on time, both balancing payments and both payments on account were paid on time, and any VAT or PAYE obligations are spotless. If anything is overdue or unpaid, fix it before applying — HMRC will see what you can see and a rushed application gets refused.

Picking the right form: 302, 305 or 304

Three different forms, depending on how you trade:

• Sole trader → CIS302. Individual registration for gross payment. The most common path. Turnover threshold is £30,000 labour-only over the past 12 months.
• Limited company → CIS305. Company registration for gross payment. Either £30,000 per director OR £200,000 total construction turnover — meet either. Personal Self Assessment history of every director feeds the company's compliance test.
• Partnership → CIS304. Partnership registration — either £30,000 per partner OR £200,000 in total. Each partner's personal SA record contributes to the compliance check.

The walkthrough below uses CIS302 because that's what most first-time applicants need. The other two forms ask the same kind of questions in the same order — turnover, business details, compliance attestation — with extra space for company / partner information.

CIS302 — field by field

Fields HMRC actually cares about, in the order you'll meet them. Boxes that are obvious (name, address, NI number) are skipped.

Section 1 — your details

• UTR. Your 10-digit Self Assessment Unique Taxpayer Reference. If you can't find it, it's on the front page of any HMRC SA letter or inside your Personal Tax Account.
• NINO. Standard National Insurance number — two letters, six digits, one letter (e.g. AB123456C).
• Trading name (if different). Only fill if you invoice under a name that isn't your legal name. Otherwise leave blank — don't invent one.

Section 2 — your business

• Date the business started. The date you started working as a subbie, not the date you registered for CIS. If you've been at it five years and only registered for CIS two years ago, the answer is five years.
• Type of work. Pick the construction operation that's the bulk of your invoicing — bricklayer, plumber, ground worker, electrician, plasterer, etc. Not "construction" in general. HMRC uses this to sense-check the turnover claim.
• Business address / yard / site of operation. A fixed UK base. A van plus a registered home address satisfies this. A foreign address or a "care of" address that isn't your own will flag.
• UK bank account. Sort code + account number where contractors will pay you under gross status. Joint personal accounts can be flagged — a sole-name account, even a personal one, is the safer choice. A dedicated business account is best but not legally required for sole traders.

Section 3 — turnover

Three figures, all for the past 12 months ending on the application date. Get these wrong and the whole application slows down.

• (A) Gross construction payments received. Total invoiced and received from contractors, excluding VAT. Includes materials at this stage.
• (B) Cost of materials. What you actually paid for materials over the same 12 months, excluding VAT. Don't inflate or estimate — HMRC will compare against your supplier invoices and bank statements if they query.
• (C) Net construction turnover (A minus B). This is the figure that has to clear £30,000 for sole traders. If it's under £30,000, the application is going to be refused on the turnover test alone.

Section 4 — compliance declaration

Tick-box section. You're attesting that across the past 12 months:

• You filed every return on time (Self Assessment, VAT, PAYE/CIS as a contractor)
• You paid every bill on time
• There are no outstanding HMRC enquiries against you
• You'll continue to do all of the above going forward

Don't tick boxes you can't honestly support. HMRC's back-office check will catch the mismatch and the refusal letter will list the specific compliance failure — far worse than withdrawing the application and applying again 12 months later with a clean slate.

Section 5 — declaration and signature

Standard "the information is true and complete" declaration plus date and signature. The online version pulls your name from the Government Gateway login.

The turnover figures HMRC actually wants

The turnover section is where most rejections start. Three rules worth getting right:

1. Materials are excluded — both VAT and pass-through stock. If you invoice £45,000 in a year and £20,000 of that was materials your client could have bought directly, your CIS turnover is £25,000. That doesn't qualify yet.
2. Labour-only contractors usually qualify earliest. A subbie who works on someone else's tickets — bricklayer turning up to a site already supplied with materials — has near zero materials cost and hits £30,000 at the lowest gross turnover. Plumbers and sparkies who buy their own gear cross the threshold later despite invoicing similar gross figures.
3. "Past 12 months" rolls. It's a moving 12-month window ending on the date you apply. If your current 12 months are below £30,000 but the previous 12 were higher, wait until the rolling window crosses the threshold before submitting. Applying early gets a refusal that locks you out of re-applying for 12 months.

The compliance test — what they cross-check

The form takes your word for it. The decision behind the scenes does not. HMRC pulls your full record across:

• Self Assessment. Last two returns filed on time. Balancing payments and both payments on account paid on time.
• VAT. If registered, every quarterly return and payment for the past 12 months on time. (Added to the gross-status compliance test from 6 April 2024.)
• PAYE / RTI. If you employ anyone, every monthly RTI submission and every PAYE/NI payment on time.
• CIS as a contractor. If you also pay subbies, monthly CIS300 returns and CIS deduction payments on time.
• Companies House. Limited-company applicants only — accounts and confirmation statements filed on time.
• Director Self Assessments. Limited-company applicants — every director's personal SA record matters as much as the company's.

HMRC's published practice tolerates a small number of minor slip-ups — up to three late payments under £100 each, or one Self Assessment paid up to 28 days late. Beyond that, expect a refusal.

Submitting — online vs post

Both routes work. The online application is faster and HMRC prioritises it slightly:

• Online (recommended). Sign in to the Government Gateway with the credentials linked to your Self Assessment. Most details pre-fill. The online form validates as you go, so obvious format mistakes get caught immediately. Confirmation email lands within minutes.
• Postal. Download the PDF, fill in by hand, post to the address on the form (currently Newcastle). Allow 10 days for HMRC to receive and log it before the 8-week clock starts.

What 8 weeks actually looks like

The published "decision in 8 weeks" is the outer edge of the normal range. Inside that window:

• Week 1. HMRC logs the application and sends an acknowledgement.
• Weeks 2–4. Back-office compliance check across SA, VAT, PAYE, CIS as contractor, and (Ltd Co.) Companies House and director records.
• Weeks 4–6. Caseworker reviews any flags. They may write asking for clarification on materials apportionment or a specific late filing — respond fast, ideally within 5 working days, or the clock pauses.
• Weeks 6–8. Decision letter posted. If approved, status updates on the CIS verification system the same day, and contractors who verify you from that day onwards see the 0% rate.

Going past 8 weeks without a letter usually means a flag is being worked. You can chase via the CIS Helpline (0300 200 3210) if it passes 10 weeks.

Common rejection reasons

What actually trips applications up, in rough order of frequency:

1. One Self Assessment paid more than 28 days late. Single biggest cause. Even a £200 balancing payment that slid by 30 days will fail the test. Fix: pay it now, then wait 12 clean months from the date it cleared before applying.
2. Materials count over-stated. If your turnover calculation has a generous materials apportionment to get net turnover under £30,000 (sometimes done to claim more under the flat-rate VAT scheme), HMRC will flag the inconsistency between your CIS302 and your VAT returns.
3. Late VAT return after a recent registration. Subbies who voluntarily VAT-register near application time often forget the first quarterly return is due even at low turnover. A single late VAT return inside the 12-month window kills the application.
4. Bank account in a partner's or family member's name. The "UK bank account" requirement gets read strictly — joint accounts and accounts in a different name cause delays even if the case is otherwise clean.
5. One large anomalous contract padding turnover. A first-year subbie with one £35,000 windfall and £4,000 of other work won't pass the business test even if the £30,000 turnover number is technically met. HMRC looks for a pattern.
6. Director's personal SA late on a Ltd Co. application. The company filings can be perfect but a director's own SA paid two months late will fail the company's gross-status test. Check every director.

After you're approved

What changes once HMRC posts a yes:

• Existing contractors. They'll need to re-verify you on the CIS verification system — the 0% rate doesn't back-date. Notify each contractor in writing the day you receive the letter so they re-verify before the next invoice.
• New contractors. They verify you fresh and immediately see the 0% rate.
• Self Assessment. No CIS deductions to reconcile — your tax bill at year-end is the actual amount owed, not the balance after HMRC has held the float. Set the money aside as it comes in. The HMRC tax calendar shows what's due: 31 January for the balancing payment plus first payment on account, 31 July for the second.
• Annual review. HMRC silently re-tests you every 12 months from the grant date. Same three tests. Most subbies don't realise this is happening until they get a withdrawal letter — see the guide on what happens if HMRC withdraws your gross status.