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Wednesday, April 04, 2007

Avoid CIS penalties with PWC checklist

PricewaterhouseCoopers have issued a checklist for construction firms to help them avoid paying a £3,000 penalty for incomplete and incorrect returns under the new Construction Industry Scheme (CIS).

The new CIS rules are about to come into force and include several changes from the old scheme.

The PricewaterhouseCoopers checklist, "What Businesses Need to Know" includes the following points:

Have businesses checked the employment status of sub-contractors especially labour-only subcontractors?
Can the accounts system process payments and give the information required for monthly returns under new CIS (either manual or electronic returns)?
Are end-to-end processes fit for purpose – who will make the decision to treat workers as subcontractors or employees?
Who will make the calls to HMRC or check the internet to obtain confirmation of the rate of deduction or gross payment status appropriate to the sub-contractor before payment?
Have businesses decided how to ensure rates of deduction or gross payment status can be input into their system?
Have businesses decided how to produce and submit their monthly returns?
Are all key staff who deal with CIS adequately trained and do businesses have a ‘new CIS champion’ to ensure the new scheme is implemented smoothly?


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