Bespoke Excel spreadsheets to calculate tax deductions
Important Changes were made to the Construction Industry Scheme April 6th 2007. If you are a contractor, it is your responsiblity to correctly determine the employment status of your workers and from April 2007 you will need to sign a declaration that you have done this. To determine whether someone is employed or self-employed, depends upon the terms and conditions of the relevant engagement.
Key elements of the change in summary:
There will no longer be any cards, certificates or vouchers.
Verification Process - subcontractors must be verified online with HMRC to ascertain whether to be paid gross or net. Payments must be made by the contractor in accordance with the net or gross instructions given by the HMRC and not as per the subcontractor.
Monthly Returns - contractors have to submit a monthly return to HMRC with an online declaration that the subcontractors listed are not employed.
Monthly Statement to subcontractors - Contractors are required to send monthly statements to subcontractors that have been paid under deduction