The countdown to the forthcoming CIS regulation changes is now well underway, with only a month to go until it is in place and contractors can register for on-line submission.
More than 250,000 contractors will be affected by the new legislation, which applies not only to those in the construction industry but also the wider business community. In fact any business which spends on average, £1m or more on construction will come under the clutches of the scheme. And with subsequent fines of up to £3,000 for inaccurate returns or not producing the monthly Sub-contractor Payment & Deduction Statement, this should be incentive in itself to make sure the data is correct.
Such automatic monthly penalties could turn out to be very costly indeed. The onus has been placed well and truly on the contractor, whom you can’t help but feel sorry for.
At Access Accounting we have received a number of calls about the £3,000 fine – being hit firmly in the pocket does make you sit up and listen. It has to be said that these penalties don’t come into place until October 2007 – there is a little breathing space. However, look how quickly the last 12 months have gone; it was last April when these changes were originally going to be put into place. Time waits for no man as they say…
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