• SAGE


0161 928 3276



We understand our clients

New CIS Rules from 6th April 2007

Newsletter issue - March 07.

The long awaited new rules for the Construction Industry are now nearly here and all Contractors and Sub Contractors need to be familiar with them. There's more responsibility, more administration and more risk of being attacked by the Taxman.

Under the new scheme...

  • Cards and certificates are being replaced by a 'verification' service to confirm whether subcontractors should be paid gross or net. Where paid net, the rate of deduction is increasing from 18% to 20%. For any workers who are unregistered, there is a new higher rate of deduction of 30%, so it's important for all Sub Contractors to get themselves registered. With the influx of foreign workers, there are now CIS factsheets available from HRMC in twelve other languages which may be useful to provide to the relevant Sub Contractors.
  • Instead of issuing vouchers, contractors will make monthly returns and issue pay statements.
  • The monthly return will include a declaration that the contractor has considered the status of the workers on the return and that none of them is an employee.

It is Contractors who will face the big changes, with even more emphasis on getting the employment status of their workers correct. Having to reclassify workers will be very expensive in terms of National Insurance and other employee rights such as holiday pay. Subcontractors who want to remain self-employed would do well to consider what they can do to help maintain this status and we can help advise on what is necessary.

The new CIS scheme brings with it a wide range of penalties for non-compliance, especially in relation to getting returns in on time and wrong.

New CIS software is also now on the market to assist with the increased administration and we can advise on this.

Guidance on the operation of the scheme is available at http://www.hmrc.gov.uk/new-cis/new_guidance.htm but please contact us for more practical advice and assistance in your own circumstances.


To work Smarter in your Business Contact Beauchamp Charles

Contact Us

"Join our newsletter for hints, tips and tax advice"


What our clients say

Dakins Property Services

Great Results, Personable, High Integrity

Choice Events Limited

All at Beauchamp Charles are very helpful, approachable and easy to talk to. They keep me informed with key dates; I can feel totally confident that I won't ever miss any deadlines! Whoever I deal with, always deal with matters professionally and efficiently and if they are unavailable they get back to me promptly.

FT leisure Ltd

I have worked with Beauchamp Charles as our management accountants for over 20 years and have never received anything less than exceptional service. Their approach is both professional and personal. Finances and particularly tax strategies are a minefield for small businesses; Beauchamp Charles have in-depth knowledge of these area, which is comforting. They pay very close attention to our business activities and have provided financial strategies that have helped our company develop.

Fredrick Thomas Electrical and Maintenance

We have used Beauchamp Charles since company formation back in 1998. Beauchamp Charles offers us a one to one service as they are small enough to offer this dedicated service and large enough to do the work and offer best advice. They get to know us as individuals and a business, always giving sound advice. Frederick Thomas Electrical are in a stronger place thanks to the service we get from them.

Barnes Walker Landscapes Limited

We are a small business and had employed the same accountancy firm for many years. Two years ago we took the decision to switch to Beauchamp Charles after several othe local businesses recommended them very highly to us. We have not been disappointed with the service they have provided to us over these last two years.