How to make CIS Less Taxing
May 30, 2006 | News
HM Revenue & Customs joined forces with Sage and Pinnacle Computing to educate on New CIS Legislation
The HM Revenue & Customs (HMRC) teamed up with Sage and its leading Business Partner Pinnacle Computing to educate construction companies throughout the UK on the New Construction Industry Scheme (CIS) which comes into force on 6th April 2007. The road show which was hosted by Pinnacle Computing kicked off in Belfast in early May, with further events in Glasgow, Liverpool, Bury and Bradford where it finished in mid June. Construction and contracting businesses of varying sizes were given a full demonstration on how to register payments online by regional representatives from the HMRC. The importance of employment status; how to verify a subcontractor; how to make deductions from payments; when and how to record payments; and how to make a monthly return was also discussed.
This new legislation will see the Construction industry undergo a sea change in the way it calculates and pays its taxes. As part of the UK e-government initiative to move public services online, from 6th April 2007 electronic submissions will be the method preferred by the HMRC for firms who work in this £65 billion sector to file their tax returns. The new scheme will remove some of the administrative burden of the current scheme and provide alternatives to the paper based processes of CIS.
The HMRC had originally planned to implement the changes to the CIS in April 2006, however because of intensive lobbying by industry representatives this has now been postponed until 6th April 2007. This delay allows the industry to prepare for the change, giving time for the new rules and procedures, as well as implications of non-compliance, to be fully understood. From April 2007 on, payments can be registered online, either through the HMRC's website or via government approved CIS packages, such as those provided by Sage.
Within the range of Sage Construction Solutions, new versions of Sage's CIS packages are already available - well in time for the April 2007 deadline. All programs automatically deduct tax from invoices and certifications, record payments and print on CIS vouchers, process monthly submissions and year-end reports. This efficient system not only offers centralised control of a key tax area, but also saves time and improves accuracy. Sage Construction solutions are specifically designed to suit contractors from small builders and specialist sub-contractors to international construction companies. In fact over 60,000 UK construction companies already rely on Sage.
As a leading Sage Business Partner, Pinnacle Computing provides the full range of Sage Construction solutions. Pinnacle has over ten years of experience in supplying Sage integrated business management solutions to not only the construction industry but also the manufacturing, distribution, service and finance sectors. With a client base of over 100 construction / contracting companies across the UK & Ireland, Pinnacle's dedicated team of construction consultants provide each client with a scalable solution to support their goals for strategic growth and enhance their competitive advantage in the construction and building industry.