Save content
Have you found this content useful? Use the button above to save it to your profile.
AIA

The CIS compliance regime: What's your experience?

by
28th May 2008
Save content
Have you found this content useful? Use the button above to save it to your profile.

The Institute of Chartered Accountants in England and Wales (ICAEW), an industry & profession panel, have been telling HMRC for a long time that the bar for gross payment status has been set too high.

The newly announced £100 de minimis is a result of that lobbying, which included a paper sent to minister level expressing concern at the potential impact on the industry. However, for any further shift, it has been told that harder evidence will be needed to demonstrate the real impact, and show that the punishment is out of all proportion to the crime.

HMRC's line is that they have tracked some gross-to-net businesses, to find they are still operating within CIS and have not gone bust, but is this the reality of the situation? Top tax lecturer Rebecca Benneyworth thinks that the regime has unintended consequences.

What is needed are real life examples to demonstrate how being shifted to net status has adversely affected businesses.

Please will you let me know what effect losing GPS has had on your clients - this does not need to be since new CIS came in, it can be before then. Have they gone bust, downsized, moved to domestic work or just carried on?

Nichola Ross Martin
Tax editor, Accountingweb.co.uk

Tags:

Replies (0)

Please login or register to join the discussion.

There are currently no replies, be the first to post a reply.