CIS Scheme

  • Thread starter THOMAS FLETCHER
  • Start date

T

THOMAS FLETCHER

Has anyone up to date info on changes taking place please? I read last year
that the voucher scheme was going to be abolished.

Hilary
 
Ad

Advertisements

T

Troy Steadman

Has anyone up to date info on changes taking place please? I read last year
that the voucher scheme was going to be abolished.

Hilary
<quote>

Construction Industry Scheme

The Government’s proposals to reform the construction industry scheme
(CIS) will take effect from April 2006. Following a period of
consultation, the draft primary and secondary legislation has been
published, supported by a set of explanatory notes. Subject to further
feedback from interested parties, the primary legislation will be
included in the Finance Bill in 2004 and the Regulations will be
introduced after it receives Royal Assent. There will then be a period
of about a year and a half for the Industry and the Inland Revenue to
prepare.

The principal changes to the CIS are as follows:

The registration process will continue unchanged, but applicants will
also be able to apply using the Internet. There will still be a
requirement for the subcontractor to complete an application form and
attend a local tax office with two proofs of identity, including
evidence of current address and NI number.

In place of CIS4 cards and CIS6 certificates, a verification service
will require contractors to inform the Inland Revenue by telephone,
letter or Internet that they wish to take on a subcontractor, provide
the subcontractor’s NI number and make a declaration that the
subcontractor’s employment status has been checked. Verification will
be confined to subcontractors who have received no payments from the
contractor in the current and two previous tax years.

In place of vouchers, the contractors will file monthly returns, giving
details of the subcontractors that have been paid, how much has been
paid, the material costs included in the payments and, where
appropriate, how much was deducted on account of tax. The returns will
include a signed declaration that none of the subcontractors are working
under a contract of employment and that they have all been verified with
the Inland Revenue as being registered subcontractors. A copy of the
return will be given to the subcontractors for them to check for
accuracy.

Filing of the monthly returns may be made by paper or electronically,
The Revenue intends to introduce an approval scheme for software that
can send electronic returns.

There will no longer be any annual returns as all the necessary
information will be provided on the monthly returns.

A new computer system will allow returns to be made electronically,
support the verification system, and identify non-compliance.

To support the employment status declarations, the Revenue is looking at
a number of possible options, one of which includes a new computerised
tool that would give guidance on employment status.

As many CIS contractors have to handle emergency out-of-hours work, the
Revenue is considering the need to operate the CIS call centre round the
clock. The computerised support system will also have to be capable of
verifying subcontractors via the Internet at any time of the day.

There will be no requirement for existing card and certificate holders
to re-register under the new scheme.

(Source: www.inlandrevenue.gov.uk/cis/index-c-tax-reform.htm )

</quote>

http://www.paypershop.com/news-cat/construct.html


--
 

Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments. After that, you can post your question and our members will help you out.

Ask a Question

Similar Threads

CIS scheme 3
New CIS scheme 28
UK CIS 2
CIS 4 6
CIS Deductions 1
CIS Question 7
CIS Software 2
UK CIS subcontractor 1

Top