Nov 14 2006
HM Revenue & Customs (HMRC) is launching a major advertising campaign to encourage contractors in the construction industry to get ready for the new Construction Industry Scheme (new CIS) in April 2007.
The campaign reminds contractors that from April, they won't need to worry about individual vouchers for every payment they make. All payments will instead be entered on a single monthly return.
It also explains that contractors who want to find out more about the changes can visit http://www.new-cis.com.
CIS Programme Director, Mark de Brunner, said:
"Avoid any mix-ups in April 2007 when New CIS comes into force.
"New CIS is designed to create a level playing field for those working in the sector.
"This advertising campaign will raise awareness among contractors and subcontractors of New CIS, to help ensure they are as well prepared as possible for its introduction in April 2007."
Contractors must also continue to satisfy themselves that the terms of any contract they have with their subcontractors are not those of employment. If contractors need help to make a decision on a subcontractor's employment status, they can call the CIS Helpline or use the Employment Status Indicator tool on the HMRC website: http://www.hmrc.gov.uk/calcs/esi.htm.
If they want to, contractors will be able to file their monthly returns online.
Cards and certificates will also be replaced by a 'verification' service to confirm whether subcontractors should be paid gross or net. HMRC is sending out letters to all contractors with a list of the subcontractors they have paid since April 2005. These subcontractors will not need to be verified when new CIS starts. Contractors will receive updated lists in March.