When one poor contractor complained that he hadn’t heard anything about the new CIS rules, I couldn’t help but feel sorry for him. Had his accountant not mentioned this to him? He or she should have been more on the ball if not – or get another accountant. After explaining what the new CIS was all about, I thought it might be helpful....
to mention what the options are for businesses looking to ensure they are CIS compliant come April 6th (for full details of the necessary infrastructure download the free BASDA guide from our website).
Most organisations may simply need to update their software with their provider, if they have an upgrade or a patch/fix. Alternatively, there are stand alone solutions which are being provided by some software houses (of course I’m going to plug Access CIS! but BASDA website is also a good starting point).
If neither of these options are possible, the organisation may be faced with having to replace its existing software – regardless of this any new or upgraded software may also need an upgrade to the operating system on the server/PCs. The business will also have to consider installation and configuration as well, along with testing the software.
Another key point to bear in mind, is that if they are already dealing with CIS manually due to low volumes of subcontractors, they might still be able to get away with this but should check carefully beforehand to ensure this really will continue to be viable. Also some more food for thought – does an organisation have any subcontractors that are not UK-based? If so, the organisation needs to know how the CIS rules are dealt with in each jurisdiction - again its software provider will be able to inform them on whether its system will handle the differences in the rules.
Kevin Misselbrook, customer services director
How could he be in the trade and not heard anything about it? He must have been on holiday for the last 6 months (well, make that 18 months after the false start last April).
If he is only a subbie it will make little difference to him anyway, well 20% instead of 18% deduction, but if he has people working for him he should have received various info from HMRC already.
Posted by: steve | May 10, 2007 at 04:11 PM