THE NEW scheme will dispense with cards, certificates and vouchers.
Registration process: Subcont ractors will cont inue to register with the Inland Revenue but they will also be able to do this electronically or by phone. They will be informed whether they should receive payments gross or net but will not be issued with a card or certificate.
Verification process: This means that when a cont ractor takes on a subcontractor who has not worked for them before they will no longer have a card or certificate to verify tax status.
Instead the contractor must contact the Inland Revenue to:
confirm the contract is one of self-employment;
ascertain whether the subcontractor should be paid net or gross.
Payment by contractor to subcontractor: The contractor will make payment to the subcontractor ? in accordance with the net or gross instructions given by the Inland Revenue.
Recording and reporting payments: The contractor must submit a monthly return to the Inland Revenue showing which subcontractors have been paid, how much they were paid and , in net cases, the amount of mater ials and deduct ions.