New CIS Rules from 6th April 2007

Newsletter issue - March 07.

The long awaited new rules for the Construction Industry are now nearly here and all Contractors and Sub Contractors need to be familiar with them. There's more responsibility, more administration and more risk of being attacked by the Taxman.

Under the new scheme...

It is Contractors who will face the big changes, with even more emphasis on getting the employment status of their workers correct. Having to reclassify workers will be very expensive in terms of National Insurance and other employee rights such as holiday pay. Subcontractors who want to remain self-employed would do well to consider what they can do to help maintain this status and we can help advise on what is necessary.

The new CIS scheme brings with it a wide range of penalties for non-compliance, especially in relation to getting returns in on time and wrong.

New CIS software is also now on the market to assist with the increased administration and we can advise on this.

Guidance on the operation of the scheme is available at http://www.hmrc.gov.uk/new-cis/new_guidance.htm but please contact us for more practical advice and assistance in your own circumstances.

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