It’s almost that time of year again folks. Yes, the tax year end. But there’s no need to panic.

For many companies nowadays, there is so little to do, they could easily be forgiven for failing to realise that the financial year end is even upon us. However, if you’re one of our many customers working within the construction industry, the following information will be of interest to you. (If you’re not, then it will be of no interest to you whatsoever!)

CHANGES TO THE CIS SCHEME TAKING EFFECT FROM APRIL 2016

HMRC is introducing a few changes to the CIS scheme from April 2016, with more to come the following year. If your business is affected by these changes, you should already be aware of them. But did you know that your accounts software may also require updating?

Here is a summary of the changes being introduced this April:

• Compulsory online filing. The online filing of CIS returns will become mandatory and contractors will no longer be able to submit returns by paper, other than in certain circumstances – for example, if an individual is unable to access a digital channel or objects to online filing on religious grounds. As well as submitting returns, contractors will also be able to amend and resubmit their returns online.
• Simplifying the compliance test. Directors’ self-assessment obligations will no longer be taken into account when determining whether a company is eligible for gross payment status.
• Reducing the threshold for the turnover test. When a company has multiple partners or directors, the threshold for determining gross payment status will be reduced from £200,000 to £100,000.

ATTENTION ALL USERS OF SAGE CONSTRUCTION/ EQUE2 CONSTRUCTION

If you are one of our many clients using Sage Construction/ Eque2 Construction, you are (or should be) already sending your returns via that program. If this is the case, the only one of the above changes you will not be able to take advantage of is the ability to amend and resubmit your return.

If you do wish to have this additional functionality then you will need to upgrade to the latest version of Eque2 Construction, V18.1, due to be released sometime in March 2016. How easy or expensive this will be is determined by the version you are currently on, the accounts product and version that it is linked to, as well as the specification of your hardware.

IF YOUR CONSTRUCTION ACCOUNTS SOFTWARE IS SUPPORTED BY UTILIZE, PLEASE CONTACT YOUR ACCOUNT MANAGER. IF IT IS NOT, THEN CALL US ON 0333 006 9060 BECAUSE WE ARE READY AND ABLE TO ASSIST YOU.

Obviously, if you are sending your return via HMRC’s website, you can continue to do so using this method. The only problem you will encounter is if you are still sending HMRC a paper return. (Does anyone still do that?!)

As far as 2017 goes, the only change we are aware of at this stage is that you will no longer be able to verify a subcontractor over the phone. This will need to be done online instead.

If you require any more information on this matter, please contact either HMRC directly, or your software vendor.