Are you ready for CIS?
Whether someone is employed or self-employed depends upon the terms and conditions of the relevant engagement and not whether the subcontractor has a CIS4 card. If you are a contractor, it has always been your responsibility to correctly determine the employment status of your workers and from April 2007 you will also need to sign a declaration that you have done this.
New Scheme
There will no longer be any cards, certificates or vouchers.
Verification Process
On engaging a subcontractor who has not worked for them for a set period of time, the contractor must contact HMRC to ascertain whether the subcontractor should be paid net or gross.
Payment
The contractor will make payment to the subcontractor - in accordance with the net or gross instructions given by HMRC.
Monthly Returns
Contractors will submit a monthly return to HMRC which will include a declaration that the subcontractors listed are not employed.
No Need to Re-register
Contractors and subcontractors who are already registered under the current CIS scheme will not have to re-register for the new scheme.
Find out more about the changes and how it will affect you on the HM Revenue and Customs Website.
Businesslink provide practical advice for businesses and they have a whole section dedicated to the Construction Industry Scheme and how it works.
