News Article - 04 June 2008
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With the new Construction Industry Scheme (CIS) due for implementation in the near future, workers are being urged to ensure they are prepared for the change.
The government has said that the scheme is being introduced to improve tax compliance within the industry and ensure that workers have the correct employment status.
Anil Patel, a specialist with accountancy firm Grant Thornton, warned that the regulations would soon be implemented.
"A lot of people have buried their heads in the sand, but this is happening on April 6th," he told website Contract Journal.
He advised workers and employers to check lists received earlier this year from HM Revenue & Customs (HMRC), stating all the subcontractors who have paid since April 2005.
Names could pose a problem, he added, stating that matches which were not completely exact should be checked against records, as businesses often have several trading names.
Additionally, some subcontractors may need to be verified. This cannot be done before a contract has been agreed or the worker has accepted a tender for work. Then the contractor must verify payment status before they can receive any monies.
He advises that one person within the company be charged with looking after the verification process. This person's details should be supplied to HMRC to provide answers to any queries.
Late last month, the CIS initiative programme director Mark de Brunner urged companies to make sure they were ready for the scheme, which will come into force later this week.
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