New CIS' to be Delayed a Year

The Government has announced that the launch of the new Construction Industry Scheme (CIS) will be delayed from 6 April 2006 as originally planned until 6 April 2007.

In response to a Parliamentary question to the Chancellor on whether the April 2006 deadline for online tax collection for sub-contractors would be met, Treasury Minister John Healey replied:

"Reform of the Construction Industry Scheme (CIS) was announced in Budget 2003 and legislated in the Finance Act 2004. From the outset, the changes have been developed in close consultation with industry representatives, in particular through the work of the Construction Industry Reform Implementation Panel, which met again today.

‘The industry has agreed to strengthen cooperation with HM Revenue and Customs including in planning a full joint testing programme for the new verification services and monthly contractors' returns, promoting the use of the new employment status declaration and analysing areas of non-compliance in the industry. And the Government have also agreed with the industry to extend from April 2006 to April 2007 the period for implementation of the final elements of the new CIS.

During this period, HMRC will step up its level of advice and compliance activity with the industry, including new interactive online software and up to 70 telephone advisers to provide help with employment status from next month."