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13th Apr 2024
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New Year pack for new CIS

by The Editor at 12:11 18/01/07 (CIS News)
Contractors will receive a bumper New Year's package of help this week as they prepare for the launch by HM Revenue and Customs (HMRC) of the new Construction Industry Scheme (CIS) in April.
With just three months to go contractors are making their final preparations. The comprehensive pack includes everything they need. It includes copies of key forms, step-by-step instructions for what contractors must do and helpful tips.

The pack helps contractors:

  • understand the importance of knowing the employment status of their workers so they can sign a declaration on their monthly return confirming the individuals they have paid under new CIS are not employees;

  • know how to tell whether subcontractors are to be paid gross or net (the new 'verification' procedure that replaces cards and certificates);

  • prepare to make returns each month;

  • Get ready to produce payment and deduction statements for those subcontractors from whom they have made a deduction, showing how much they have been paid and how much the contractors have deducted.

Final preparations
New CIS Programme Director, Mark de Brunner, said: "Contractors now need to make their final preparations for the April changes to the Construction Industry Scheme. There's plenty of help and support for them - in the pack, on our website and over the phone."

Contractors can get advice and further information from a number of places: the HMRC website, the helpline on 0845 366 7899, Business Support Team seminars, Employer Talk events and Business Advice Open Days.

The National Federation of Builders is also holding a number of workshops around the country at which HMRC's CIS team will be giving advice about how to prepare for New CIS.

CIS Details
The pack includes a blank contractor's monthly return (CIS 300) and return continuation sheets CIS300(CS). HMRC will pre-populate returns with the details of those subcontractors that contractors have paid in the previous three months. It also includes a CIS300(CS)(Man) a blank continuation sheet, which contractors should fill in when they have made a payment to subcontractors whose details cannot fit on page 3 of the contractor's monthly return. When filling in the blank continuation sheet, contractors must enter their Accounts Office Reference, their Unique Tax Reference and Period of Return. Contractors can obtain further continuation sheets from CIS orderline 0845 366 7899.

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 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 news
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

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