We’ve been pushing for businesses that will be affected by the changes to the Construction Industry Scheme (CIS) to update their software since last year and we've continued to push ever since then. There’s also been much publicity in the press recently - Pay Magazine covered the topic in its January and February editions and Accountingweb has been covering the topic for a while with Accountancy Age recently reporting on the lack of readiness for the changes according to a survey undertaken by KMPG.
There are of course, many questions still being asked so I thought it might be worthwhile to recap on what the CIS changes mean for the industry:
• Vouchers will no longer be required – this refers to the monthly CIS23, CIS24 and CIS25
• The subcontractor cards and certificates are also no longer required (CIS4, CIS5, and CIS6)
• You’ll need to keep detailed records of all subcontractors for payments and deductions. There will be no annual returns but instead there will be a monthly return to HM Revenue & Customs (you’ll have the choice of electronic or paper format) including the new monthly Subcontractor Payment & Deduction Statement
• Any subcontractor verification will be done by phone or online
• TTQT - or Tax Treatment Qualification Test as it is known - will determine if a subcontractor may be paid gross or have tax deducted at either the standard or higher tax rate before they’re paid.
For more information on Access CIS or a copy of the BASDA guide visit: www.access-accounts.com/cis
Kevin Misselbrook, customer services director