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New publicity drive on CIS

by The Editor at 10:36 06/02/07 (CIS News)
A national publicity campaign has been launched this week to remind contractors and subcontractors in the construction industry that the new CIS will be here in eight weeks' time.
The campaign will be run in the trade, national, regional and radio press. Some of the messages highlighted in the adverts are:
  • You may have already heard that the Construction Industry Scheme is changing this year;

  • From April there will no longer be CIS cards and certificates;

  • Subcontractors working on an existing contract don't need to do anything;

  • But if you're a subcontractor starting a new contract you need to supply the contractor with a few simple details, which HMRC will tell you about shortly; and

  • If you'd like to know more visit www.new-cis.com or call 0845 366 7899.

New CIS Programme Director, Mark de Brunner, said: "There are only eight weeks before new CIS comes in, and contractors should now be ready. There's plenty of help if they need it - online, over the phone and in the packs we sent to contractors last month.

"Contractors can still get additional advice when they attend the Business Support Team seminars, Employer Talk events and Business Advice Open Days."

New CIS
Under new CIS, the old registration cards (CIS4) and tax certificates (CIS5/6) from the current scheme will be dispensed with and a new verification system will be introduced to ensure that when a contractor first engages and pays a subcontractor, the contractor is told whether to pay the subcontractor in full or make a deduction from the payment. If the subcontractor is not registered, the contractor will be told to make a deduction at the higher rate.

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Contractors must also satisfy themselves that the terms of any contract they have with their subcontractors are those of self-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.

Currently, subcontractors hold a tax certificate or registration card, which must be presented to contractors before any payments can be made. These documents indicate whether a subcontractor should be paid gross, or under deduction. For all payments, contractors must also submit vouchers on a monthly basis to HM Revenue & Customs. Contractors are also required to complete an end-of-year tax return, a requirement which will disappear under new CIS.

Hardhatter has a dedicated news area relating to developments surround the new CIS. You can access the information and subscribe to receive email alerts to new stories - free of charge in the Hardhatter CIS news area.

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Susie Hughes
The Editor © Hardhatter 2007