Construction industry scheme consultation
HMRC is consulting until 22 September 2014 on changes to the construction industry scheme (CIS). The consultation looks at ways of administering the scheme more efficiently and proposes the following changes:
lowering the threshold for the upper limit of the turnover test to help more established businesses with multiple partners or directors qualify for gross payment status. The proposed new upper threshold could fall from £200,000 to £150,000, £120,000, or £100,000. The new threshold would also apply to closely held companies;
simplifying the compliance tests to reduce the number of businesses that lose their gross payment status;
introducing mandatory monthly online filing. The document notes that already 80% of CIS registered businesses file online; and
improving the online verification process, allowing contractors to search for previous verifications and more than one subcontractor at a time. This should reduce the costly use of the CIS helpline.
Construction industry scheme consultation
HMRC is consulting until 22 September 2014 on changes to the construction industry scheme (CIS). The consultation looks at ways of administering the scheme more efficiently and proposes the following changes:
lowering the threshold for the upper limit of the turnover test to help more established businesses with multiple partners or directors qualify for gross payment status. The proposed new upper threshold could fall from £200,000 to £150,000, £120,000, or £100,000. The new threshold would also apply to closely held companies;
simplifying the compliance tests to reduce the number of businesses that lose their gross payment status;
introducing mandatory monthly online filing. The document notes that already 80% of CIS registered businesses file online; and
improving the online verification process, allowing contractors to search for previous verifications and more than one subcontractor at a time. This should reduce the costly use of the CIS helpline.
