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Condoc proposes simpler approach for smaller contractors
HMRC are considering ways to improve the operation of the construction industry scheme (CIS) for smaller firms and to introduce mandatory online filing for contractors.
Achieving and retaining gross payment status can be problematic, said the Revenue. The department recognised that the current tests are complicated and difficult to comply with, and losing gross payment status for a minor fault can have a major impact on a business.
Small partnerships and companies can also be dissuaded from seeking gross payment status because of the level of turnover needed to obtain it, HMRC added.
A new consultation document (condoc), Improving the Operation of the Construction Industry Scheme, sets out proposals for simplifying and improving the compliance and turnover tests, to enable more subcontractors to access gross payment status.
The condoc also proposes giving contractors/subcontractors digital access to their records, while another measure is aimed at reducing costs for contractors and the taxman by improving the CIS online system.
The Revenue believes the planned improvements will create the viability for mandatory online filing and verification for contractors.
The condoc also moots the introduction of a mandatory electronic verification process on the basis the current system is too slow and name-matching can be unreliable – which leads to many contractors using the CIS helpline that can prove costly for both businesses and HMRC.
Comments should be sent by email no later than 22 September.
