The Inland Revenue (IR) has published an analysis of feedback to its consultative document The Inland Revenue and the construction industry: working together for a new scheme. The document and feedback have been instigated due to industry-wide concerns about the current Construction Industry Scheme (CIS).
Over 200 responses were received from across the industry. Feedback was broadly positive, with the majority agreeing that personal visits to the IR for registration and verification purposes should be abolished. Getting rid of the voucher system in favour of periodic returns was endorsed as a time and cost-saving move.

There was concern that traditional communications would be stopped in favour of electronic methods 鈥� the IR says this will not happen. Many firms rallied against verification on a contract-by-contract basis, this is now being reviewed.

The Employment Status declaration also caused worry. The IR is upholding a general obligation that businesses consider employment status rules when engaging a worker. It is looking into ways of giving guidance on the subject.

Finally, concerns were voiced as to the implementation of transitional arrangements. The IR will not be asking those who are already registered for the CIS to do so again for the new scheme; a simple transfer process will be devised.

Further details can be found on www.inlandrevenue.gov.uk.

Source

Electrical and Mechanical Contractor