BASDA advises its members and business software users on the implications of the new CIS

The new HM Revenue & Custom (HMRC) ‘Construction Industry Scheme’ (CIS) actually applies not only to Contractors in the construction industry but any other organisation that employs sub-contractors – for example Local Councils, Corporations etc that have Contracts for more than £1m.

There are over 250,000 registered Contractors and over 2 million sub-contractors on HMRC records that will be affected by reforms to the CIS.

The reform of HMRC CIS was due to commence in April 2006 but, after pressure from the Industry (including BASDA), the new CIS now been postponed to April 2007. Historically CIS has been associated with Payroll systems, but the new requirements are more related to an Accounts Payable function than Payroll.