Sir, I have just attended a seminar by HM Revenue & Customs on changes to the CIS scheme.
Two women from HMRC told the audience the introduction had been delayed a year because the industry needed more time to prepare ? apparently HMRC has been ready for ages and are annoyed that we are holding them back.
I was then told that the new system would 'level the playing field' and 'reduce cost and bureaucracy'. No need for CIS cards, vouchers or annual returns. Good news? A las not.
The proposals spell the end to the days when someone with a valid CIS card could get working straight away.
Now we will have to go online and, according to the handout I was given, follow a 17-page procedure just to verify each subcontractor's CIS and employment status. Oh, and make sure they have their Unique Tax Reference and National Insurance number handy or they will go onto 30 per cent stoppages.
No longer will you have to fill in CIS vouchers every month, one for each subcontractor, and send copies to everyone.
HMRC has made it 'simpler and cost-effective'.
Now for every subcontractor, every month, you have to give them a Statement of Payment. This should contain the contractor name, subcontractor name, UTR and payment details consisting of gross pay, less cost of materials, amount liable to deduction and amount deducted.
We are being asked to do the same as before but have to design, write, print, copy and file our own Statements of Payment.
There is no more annual return. You now have to do monthly returns. So instead of doing something once a year, you have to do it 12 times.
The savings will be huge ? for HMRC.
Evan Hurton, MCIOB Address supplied