SIG: Construction

SIG Chairperson

The Construction SIG is chaired by Jim Etherton.  Jim has worked with our member COINS for 16 years and has been actively involved in BASDA since 2006.   He is chair of the Financials & Accounting SIG where he led the BASDA response to HMRC on VAT PPD and represents BASDA on the HMRC’s Construction Industry Scheme’s (CIS) Operational Forum.

The Construction SIG is currently engaging with:

HMRC – Twice yearly attending the Operational Forum to discuss the operation of the scheme and the impact on change.   The priority is to understand the scheme, how it is operating and that any software changes are adequately considered.

Aims & Objectives

To maintain close links with decision making processes within government that affect the delivery of Construction software, and wherever possible influence the implementation of policy.

Represent BASDA on HMRC’s CIS’s Operational Forum  which is the tax deduction scheme for construction workers in the industry.  Twice yearly forum of different bodies to discuss operation of the scheme and priority there is to keep in touch how scheme is operating and software changes adequately considered.

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Represent on HMRC's CIS's Operational forum

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Operation of Tax Deduction Scheme

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Software Changes for TAX Deduction Scheme

Who should get involved

All construction software developers should get involved in this SIG to ensure they are represented at Government decision-making level to influence the requirements and legislation being introduced. The Construction SIG provides the opportunities to help influence decision making and implementation, in addition to providing foresight and product planning information vital for development road maps.

Current Agenda and Successes

  • The chairman acts as the BASDA representative on the CIS Operational Forum.
  • The group is currently engaging with HMRC in respect of the proposed introduction of Reverse Charge VAT for the construction industry.  BASDA submitted a formal consultation response in June 2017, opposing the proposal but also suggesting how the adverse effects of implementing such a proposal could best be mitigated.
  • Following the failure of HMRC to consult on the operation of this at a sufficiently early stage  BASDA negotiated a concession from HMRC with regard to which amendments needed to be submitted together with a delay in mandatory electronic submission for affected members and an interim solution with operated up to April 2017
  • BASDA submitted a formal consultation response in June 2017, opposing the proposal but also suggesting how the adverse effects of implementing such a proposal could best be mitigated
  • BASDA were able to confirm that the proposals made sense from a software perspective.  The proposals have since been successfully implemented
  • This consultation included some ideas which had been put forward by BASDA to HMRC as early as 2009
  • BASDA was heavily involved in supporting the specification and testing of software to comply with the new scheme.  The implementation was very successful, partly due to the delay in implementation and more extensive testing for which BASDA had forcefully lobbied

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