The New Construction Industry Scheme – One year on

Can you afford to get it wrong?

New CIS penalties kicked off in October 2007 with HMRC issuing 86,401 penalty notices
that could have been avoided. November saw the start of the scheduled review of
£107,000 Gross Payment Subcontractors, which might lead to their payment status being
changed to payment under deduction.

This course will examine the “new” rules for making payments to Subcontractors in the
Construction Industry; the potential problems, pitfalls and penalties for getting it wrong!
It will fully explain the changes brought by the New Construction Industry (Tax
Deduction) Scheme and the aims and targets of HMRC.

We will review what payments are within the scope of the scheme and what payments
can be excluded from this onerous task; who is in and who is out, what are “construction
operations” and what work is excluded. What businesses are Contractors and Deemed
Contractors and the rules for Contractors and Subcontractors and how to achieve or
protect “Gross Payment Status?”

Delegates will receive practical advice with worked case studies on all aspects of the
New Scheme, from registration to submission of the new CIS300 monthly returns. This is
essential training for staff involved in the operation of the scheme and/or those that have
to advise on its application.

Course Programme:
• What is the Construction Industry Scheme?
• The principle of the tax deduction scheme
• Understanding the changes and their implications
• Understanding the roles and responsibilities of Contractors and Subcontractors
• Deemed Contractors, the £1m spend and when the rules apply
  to non-construction industry businesses
• Operating the New Construction Industry Scheme
• Contractor and Subcontractor Registration
• Making payments to Subcontractors
• Tax deductions, materials and other costs
• Subcontractor verification
• Subcontractor payment status
• The new monthly returns and declarations
• The New Penalty Regime
• Coping with the Compliance Test
• The “Scheduled Review – Tax Treatment Qualification Test”
• Handling an HMRC Inspection
• Employed or Self-employed – Getting it Right
• A Construction Industry Checklist

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