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The CIS sees contractors deduct money from payments made to construction subcontractors and pass it to HM Revenue and Customs (HMRC), which counts the deductions as advance payments towards the subcontractor’s tax bill.
In 2014 HMRC announced plans to update the scheme to make it simpler and less expensive for businesses, and to allow more subcontractors to achieve gross payment status so that they receive money without deductions.
From the beginning of the 2016-17 tax year, the following will apply:
The changes due in April 2016 mean that contractors and their authorised agents will need to register for HMRC’s online services or ensure that their commercial software package will remain compliant.
A further change is scheduled for April 2017, when verification of subcontractors will have to be carried out online.
HMRC estimates that 40,000 construction contractors and subcontractors will be affected by the changes.
Nice little job in North Yorkshire taking place for one of our prestigious clients! 🏠 due for completion in Decembe… https://t.co/s8RHIv5d1c
One of our office doggies (Charlie) being a top nuisance and pro desk invader! 🐕 🐶 Good job we all love him a Kal… https://t.co/d3pm4QaJ4W
You can’t beat Friday afternoon site visits! 😎👌We hope everyone has had a great week and for you all to enjoy you… https://t.co/WUesWngKuS
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