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Construction industry scheme

HMRC have issued their latest round of guidance on the new construction industry scheme — the September 2006 CIS Update (www.hmrc.gov.uk/new-cis/update-sep06.pdf). On pages 6 to 7 of the update HMRC have unveiled the new monthly return which all contractors will have to complete from next April. Readers with good eyesight can now read the much publicised new 'employment status declaration' in box 6 which reads: 'The employment status of each individual included on this return and any continuation sheets has been considered and payments have not been made under contracts of employment'.
Contractors are required to put a tick in the box to confirm this statement and the penalty for an incorrect and negligent declaration is up to £3 000. However this statement appears to go beyond the statutory requirements. The wording of both...