Autumn Statement 2014 - CIS

Autumn Statement 2014 – CIS

Thu 04 Dec 2014

OTS Construction Industry Scheme (CIS) improvements will aim to reduce complexity.

The Government will implement a number of improvements to the CIS which will be announced shortly.

The CIS changes will be welcomed in both the construction sector and non-construction businesses that perform construction operations. We will have to wait for the details to be published to see whether the improvements do actually reduce administration.

The CIS as it stands is very complex to operate in terms of registering as a contractor or subcontractor, verifying the subcontractor’s tax withholding status and the filing of statutory returns. The proposals within the consultation document were designed to reduce the overall administration of the scheme but also to make greater use of technology.

There is a great frustration for the need to reduce the compliance burden in respect of the CIS. We are hopeful that the summary of responses which are to be published soon, will consider these and will go some way to simplify them.

Whilst contractors and subcontractors will support the overall objectives and welcome the increased use of technology, it is important that the timing of the implementation of any changes and the levels of pre-launch testing are considered carefully because of the difficulties in adapting systems to the new requirements. This of course, is all to be seen.

Will Construction Industry Scheme improvements make life easier for business? Time and the detail will tell #AS2014

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Autumn Statement 2014 - CIS

Autumn Statement 2014 – CIS

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