The government is consulting on the operation of the construction industry scheme (CIS). Jennifer Adams highlights the potential improvements and asks what AccountingWEB members think of the proposals.
Ask any accountant whether their client mix includes CIS contractors and/or subcontractors and the answer will invariably be in the affirmative. As such, the consultation paper headed Improving the operation of the construction industry scheme (CIS) should be compulsory reading as the proposals will affect all such clients and their agents.
As usual, the rhetoric of “reducing the administrative burden” cannot mask the real motivation behind the proposals, which is to reduce HMRC’s costs. Many of the proposals do not necessarily ‘reduce’ but could simplify the regime for contractors and subcontractors.
Overall many of the proposed changes are to be welcomed, but as ever are dependent upon HMRC’s ability to deliver its digital strategy effectively. Apart from mandatory online submission by October 2016 no other time frame is given.
The main accounting bodies will be submitting their comments by the deadline date of 22 September 2014. AccountingWEB will also be submitting a response on behalf of members to include any comments made to this article. The full text covers:
- Changes to the gross payment rules and compliance tests
- Requiring online submissions
- Online appeals
- Nil returns
- Changing the verification process
- AccountingWEB members respond.
About Jennifer Adams
Jennifer Adams is Consulting Editor of AccountingWEB and is a professional business author specialising in corporate governance and taxation. She runs her own accounting and consultancy business with offices based in Surrey and Dorset.