new construction industry scheme - May 2005
Are you aware of the changes which will affect The Construction Industry Tax Deduction Scheme (CIS)? In 2006 the old CIS will cease to exist and will be replaced by a new scheme which will inevitably require more paperwork for contractors. Exact details of the new scheme are not yet finalised but we do know it will involve the mandatory completion of Monthly Returns.
In October 2005, the Inland Revenue are planning to mail every contractor/subcontractor with details of the CIS reform and reminder of status. Early indications suggest that the Inland Revenue’s prime target will be labour-only subcontractors (CIS4 holders) so it is crucial that you have considered your status and that of your sub-contractors and believe that you are categorised correctly.
In readiness for the introduction of the new scheme, it is of vital importance that you have completed a full year of compliance, i.e. you must have done the following from April 2005:-
- Submission of the following forms on time:-
- Self Assessment Tax Return
- Pay As You Earn Annual Return
- Payments of the following by the due dates:-
- Income Tax from Self Assessment
- PAYE Tax and NIC
- Corporation Tax
Failure to do this could lead to cancellation of your registration before the scheme even begins!
We intend to keep our clients fully informed as the scheme unfolds. Once more information is available, we will update you with any important news. However, if you have any particular concerns in the mean time please do not hesitate to contact us.
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