Introduction

In April 2003, Gordon Brown announced changes to the Construction Industry Scheme (CIS). The changes have been deferred several times but in the Pre-Budget Report in December 2006, the government confirmed that the new CIS will be introduced on 6 April 2007. There is clearly a lot to think about before then. The new system places great emphasis on contractors' procedures and backs this up with automatic penalties.

Under the new scheme the Revenue will be placing great emphasis on automatic penalties for late returns, failure to provide records or payslips etc but also a monthly emphasis on the employed/self-employed position of the subcontractors. If contractors get this wrong, once again penalties may apply.

This briefing focuses on the main areas requiring consideration over the coming months. There are some fundamental issues which need to be considered prior to April 2007.

We would welcome a call or email if you have any questions on anything we have covered in this newsletter.

We offer a comprehensive service to all types of businesses and individuals, and have the benefit of membership of the UK200 Group of Practising Accountants, enabling direct access to expertise in areas outside our normal work.

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