One of the key changes from April 2007 affecting contractors will be the new verification process for subcontractors. This will replace CIS registration cards and tax certificates. This means that from April 6, 2007 before contractors pay any subcontractors they may need to contact HMRC to:

• check that the subcontractor is registered for CIS, and


• find out whether they should be paid gross or net.

Subcontractors who do not need to be verified
In March - April 2007, HMRC will send contractors a final list showing subcontractors that they have paid since April 6, 2005 that do not need verification after April 5, 2007.

In the next couple of weeks, HMRC is sending contractors an early version of the list either in paper form or CD-rom, depending on the number of subcontractors they use.

But this interim list is not definitive as new subcontractors could be included between now and April or individual's circumstances might change.

The interim list should be discarded when the final list is received in March - April 2007. The final list will show subcontractors that should be paid either gross or net after April 5, 2007. An example of the document contractors will receive is available on the HMRC's website.

Further information
For more information about the CIS see:

• Sorting out self-employed v. employed status - Hardhatter


• The changes from the 'old' to the 'new' CIS - Hardhatter


• Introduction to the new CIS. - Hardhatter

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Hardhatter also has a dedicated newsroom for all issues relating to the CIS. You can subscribe to receive email alerts to your inbox each time new information about the CIS is posted.

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Susie Hughes
The Editor © Hardhatter 2006