The New CIS Scheme

The New CIS Scheme

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As I sit trying to reconcile CIS25s which should have been received by my subcontracting builder client I am beginning to wonder if HMRC realise with less than three months to go what a can of worms they are about to open.

I see contractors who:

Don't issue CIS25s until after the nth reminder
Issue CIS25s up to 12 months late
Issue CIS25s for the wrong amount
Issue CIS25s with the wrong date
Issue CIS25s at the end of the tax year

Do the generals at HMRC actually know what it's like "in the trenches"
Stuart Jones

Replies (8)

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By AnonymousUser
19th Jan 2007 18:26

back in the real world
For those living in the real world - A huge emphasis on the word "should" is needed here.

How many contractors do you think will actually comply? And when they dont, how are HMRC going to enforce this?

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Euan's picture
By Euan MacLennan
24th Jan 2007 10:07

QTAC
No-one else seems interested in new CIS programs to offer as a bureau service to their contractor clients, but I have just been told by QTAC that their product has now been approved by HMRC.

They offer Payroll Manager for 50 employees/subbies spread over unlimited companies for £170a year. We have used their PAYE calculator (Payroll Assistant) for years - it has proved to be an excellent product and will costs us £110 for the 2007/08 version, so adding new CIS functionality is only an extra £60. That is good value!

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By JSJ54
22nd Jan 2007 08:41

Just when I thought I was in a minority of one
Mr Samuel posted his comment. Thank you, thank you, ..........

Now, what the hell are we going to do about it?

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Euan's picture
By Euan MacLennan
22nd Jan 2007 10:32

Get a new CIS program
I agree that most small contractors, even those who currently cope with the old CIS adequately, will find the new CIS a culture shock to put it mildly! But it is far too late to protest or obtain another delay - contractors will just have to get on with it and this provides an opportunity to their accountants to offer a bureau service to clients.

The problem is the lack of availability of suitable new CIS programs or at least, they are coming onto the market so late that it is difficult to assess their respective merits. The major construction industry packages will offer the new CIS as an add-on to their existing job costing and project management systems, but these are big expensive packages. What we need is stand-alone payroll-style programs that will produce the monthly payslips, be able to file the CIS300 by internet and will be able to verify sub-contractors online.

I understand that QTAC has built new CIS into its 2006/07 payroll product and MoneySoft claims it will have new CIS functionality ready, but neither has yet been approved by HMRC. Does anyone know of any approved programs suitable for bureau use at a cost of not more than £250 a year?

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Euan's picture
By Euan MacLennan
19th Jan 2007 11:36

So
... the HMRC generals have listened to the foot soldiers in the trenches and got rid of CIS25s completely. Give HMRC some credit!

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By Paula Sparrow
19th Jan 2007 13:05

But one of the new obligations is to provide the certificates on
Under the new rules the contractors are required to provide the subcontractor with a tax deduction certificate within 14 days of the end of the tax month under threat of a £300 plus penalty, so the problem of receiving and reconciling vouchers should disappear under the new regime.

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By User deleted
06th Feb 2007 11:50

No-one wants to offer a bureau service?
Surely this is a fantastic oppertunity to expand our services to our clients? Selling more to people who already value your services is widely known to be more successful than selling to new customers.

Many small contractors aren't going to be comfortable with the new regs and especially filing online. Who do they turn to?

As the HMRC system can't be tested before 6th April, how do we know if it'll be up to the job as a bureau service? I suspect it won't, but finding an alternative is tricky. (Will look into QTAC though, thanks Euan.)

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By AnonymousUser
22nd Feb 2007 10:21

Iris payroll professional (formerly Intex)
We are considering switching from Iris PAYEMaster to this mainly because of the new CIS regulations but also because it has more funcionality and is a genuine network program. How do users of the package find the package generally and, in particular, since Iris bought Intex?

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