The countdown begins: introduction of new CIS rules to affect thousands of businesses

Reform includes £3,000 automatic penalties for non-compliance

Colchester, UK - 6th March 2007 - More than 250,000 contractors will be affected by the forthcoming changes to the Construction Industry Scheme (CIS), which will come into place in just a month's time. Contractors across the UK will need to ensure that information they hold on their sub-contractors is correct or face fines of up to £3,000 if they fail to submit accurate and timely returns to HM Revenue & Customs (HMRC) or provide monthly Sub-contractor Payment & Deduction Statements. The changes are all part of the Government's move towards electronic transactions and to address the issue of counterfeit cards and certificates, bringing three government databases together to provide single records for each CIS contractor and sub-contractor.

Kevin Misselbrook, customer services director for Access Accounting and recently elected deputy chairman for BASDA^* commented, "Every business that employs sub-contractors will need to have all their information up-to-date in order to comply with the new regulations. And this not only applies to the construction industry but also to other business sectors that employ sub-contractors - such as retail and local councils - where their average annual spend on construction is £1m or more. Today marks the countdown to the changes coming into force, with automatic penalties of up to £3,000 each month from October 2007, based on the number of sub-contractors employed."

Since last year, Access Accounting, the award-winning business and accounting software developer, has been urging companies to take prompt action to be prepared for the new legislation and to avoid the penalties. However, many organisations don't appear to be ready for the new CIS. In order to help businesses fully understand and plan for the changes, Access is continuing to offer a free copy of the recently published CIS white paper from BASDA.

For more information on Access Accounting, or to receive a copy of the BASDA CIS white paper, please telephone 0845 3453300. Additional help with specific queries on the new legislation also can be obtained by contacting the HMRC's CIS helpline on 0845 366 7899.

^* BASDA - Business Application Software Developers Association

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