Construction & Tax Law e-Update

Originally published 22/08/05

As from April 2006 the new Construction Industry Scheme (‘CIS’) will come into operation and HM Revenue & Customs (‘HMRC’) have published new guidance and information sheets to provide businesses with an introduction to the new system in advance of its implementation.

The new guidance and Fact sheets can be accessed at: http://www.hmrc.gov.uk/new-cis/new_guidance.htm

Under the new CIS, subcontractors will no longer need certificates or CIS 4 registration cards. Instead, contractors will need to "verify" the status of subcontractors with the Inland Revenue to establish whether to pay gross or under deduction of tax.