Presidents view

As we enter 2007, the launch of the revised Construction Industry Scheme (CIS) on 6 April fast approaches.

In recent years, the ECA has provided members with information to enable them to prepare for the revisions and as the final stages near we have produced, The New Construction Industry Scheme, Countdown – April 2007. We see this as an invaluable month-by-month guide, advising contractors on how they can facilitate a smooth transition.

Revisions include a subcontractor verification system and contractors’ monthly returns, which will replace vouchers, cards and certificates.

This is all good but, understandably, such change also causes a modicum of concern.

We advise that members review the status of their subcontractors as soon as possible, checking whether they should be employed or self-employed. If HMRC re-classify a subcontractor as an employee, there may be financial implications, which we wish to avoid. HMRC can recover outstanding amounts from as far back as six years ago, so it is important to take action now.