The factsheets have been translated into Albanian, Bulgarian, Czech, Hungarian, Latvian, Lithuanian, Polish, Portuguese, Romanian, Russian, Slovakian and Turkish.

Doug Tweddle, HMRC New CIS Programme Sponsor, said: "All sub-contractors in the construction industry need to know how the changes after 6 April will affect them; both in terms of their employment status when they are taken on by a contractor and how they are paid.

"We recognise that a growing proportion of construction industry subcontractors do not have English as a first language and we are pleased to be able to help them understand the new arrangements by making available factsheets in a language they will be fluent in".

The factsheets that have been translated are:

• CIS 342 - Registering for New CIS - advice for subcontractors
  
• CIS 343 - Applying to be paid gross - advice for subcontractors
  
• CIS 344 - Getting paid by a contractor - advice for subcontractors

They are available on the HMRC website.

Background
New CIS is designed to create a level playing field for those working in the sector. 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.

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 (0845 366 7899) 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 2006