This new book provides you with all the New CIS guidance you need. It walks you through the new rules, explaining them clearly and offering practical help along the way.

The content includes extended coverage of employment status issues and covers all of the practical aspects of the new regime including registration, verification, monthly returns, the compliance test and how to handle an Inspection. The book even includes guidance on the related topic of Managed Service Companies. Extensive appendices include all relevant HMRC material and a practical walk-through the Employment Status Indicator tool.

If you're a tax advisor, accountant or a finance director; a contractor or a subcontractor, this book will help you ensure full compliance.

1. The new Construction Industry Tax Deduction Scheme:
Development of the new scheme; Primary legislation; Secondary legislation; HMRC guidance;

2. Background to the CIS and the Tax Deduction Principle:
The background; The Tax Deduction Principle; The first Construction Industry Scheme; The second Construction Industry Scheme; The new Construction Industry Scheme;

3. To whom does this apply?
Scope of the scheme; Construction contract; Subcontractors; Contractors; "Deemed" contractors; Not contractors;

4. Exemptions:
Summary; Exemption: recipient registered for gross payment; Exemption: payments treated as earnings from employment; Exemption: deemed contractors; Exemption: charities as contractors; Exemption for small payments; Exemption for payments to the owner of land on which work is carried out; Reverese premiums; Payments made as agent for the LEA; Exemptions for public bodies: private finance arrangements;

5. Non-UK businesses operating in the UK:
Non-resident businesses generally; Non-resident companies registered as contractors or subcontractors; Non-resident individuals and partnerships registering for the CIS; Non-resident subcontractors who do not register; Obtaining National Insurance numbers and UTR's; Foreign language facilities; Repayment of CIS deductions where there is a double taxation agreement; Repayment of CIS deductions where there is no double taxation agreement;

6. How to register:
Registration as a contractor; When to register as a contractor; The registration process; Multiple schemes: election by contractors; Groups of companies; Registration as a subcontractor; Subcontractors: registration as self-employed;

7. Contractor obligations:
Registration; Employed or self-employed; Employed workers; Self-employed subcontractors; CIS payment status: verification; Deduct tax; Keep records; Make a monthly return; Provide subcontractors with statements; Pay over the tax deducted; Due dates for payment;

8. Construction operations:
Statutory definition; Comparison with old scheme rules; Importance of definition; Guidance on terminology; Summary;

9. Employment status:
Introduction; CIS employment status declaration; It is wrong to assume HMRC has accepted self-employment; An existing self-employment does not automatically transfer; Subcontractors under greatest scrutiny and risk; How to determine the employment status of workers; Case law guidance; The "irreducible minimum"; Other key factors of employment or self-employment; The intention of the parties; Contracts; Still not sure? Summary;

10. Verifying new subcontractors:
Overview; Legal background; Repeated engagements; Change of status by subcontractors; Practicalities: early days of the new scheme; Practicalities: form CIS333; Practicalities: new subcontractors; Responses to verification applications;

11. Paying subcontractors:
Employment status; Verification; Making payments: subcontractors registered for gross payment; Making payments: subcontractors registered for net payment; Payment advice; Making payments: subcontractors who are not registered under the scheme; Making a payment to a third party; Other reductions in the payment made; Public bodies as subcontractors;

12. Monthly returns:
Legislation; Returns process; Contractor details; Subcontractor and payment details; Subcontractor paid gross; Subcontractors paid net of standard rate deduction; Subcontractors paid net of higher rate deduction; Declarations; Practicalities: paper returns; Practicalities: online returns; Due date for returns; Information for subcontractors; Electronic submission of monthly returns; Penalties; Contractors becoming inactive; Correcting errors on returns; Summary;

13. Record keeping and enforcement:
Introduction; Specific obligations; Subcontractor records; Companies: additional requirements; Form of records; Evidence: employment status; Contracts for construction operations; Verification details; Advice of payment; Payments of CIS tax; Company set off; Change of control of close company; Failure to pay amounts due; Recovery proceedings; Interest on overdue payments;

14. Registration for gross payment:
Legislation; Conditions applying to all subcontractors; Companies: alternative test; The business test; The turnover test; Evidence of turnover; New businesses: the turnover test; Turnover test treated as satisfied; The compliance test; Refusal: appeals;

15. Meeting the compliance test:
Relevance of the compliance test; Qualifying period; The compliance conditions: individual applicants; The compliance conditions: application by a partnership; The compliance conditions: application by a company; Failure to meet the compliance conditions; Claim that certain compliance conditions do not apply; VAT obligations;

16. Loss of gross payment status:
Introduction; Legislation; Rights of appeal against determination; Consequences of issue of a determination; Re-aquiring registration for gross payment; Practical implications; Failure to meet the turnover condition; Failure to meet the compliance conditions; Reasonable excuse for failure; Remedial action by the advisor: loss of gross payment status;

17. Payment under deduction:
Registration for payment under deduction; Legislation; Refusal; Cancellation of registration for payment under deduction; Registration for payment under deduction: subcontractors removed from registration for gross payment; Receipt of payment under deduction; Specimen advice of payment; Treatment of tax suffered: income tax; In-year payments;

18. Company set off of amounts deducted:
Treatment of CIS tax suffered generally; Treatment in the hands of an individual; Treatment in a limited company; Order of set off; Statutory provisions; Treatment of excess;

19. Employer issues:
PAYE and NIC; Companies: set off of amounts suffered under the CIS; Employers liable to make electronic payments of PAYE; Impact of late payments on subcontractor status; Breaches which do not cause loss of gross payment status; Travel and subsistence expenses paid to employees; Payments under working rule agreements; Provision of a van for employees; Payments for use of a privately owned van or car: approved mileage allowance payments; Provision of lunch and other refreshments on site;

20. HMRC inspections and what to do:
Background; Code of Practice 3; Notice of the inspection visit; Where the inspection takes place; Professional representation; The personnel involved; How long will the inspection take? The opening interview; Reviewing the relevant business records; After the inspectors have gone; Agreeing any liabilities; Recovery of liabilities from subcontractors; Negotiating a settlement; Agreement of the offer; Post-review action;

21. Construction industry checklist:
Introduction; Pre-new CIS start date; Annual CIS checks; Appendix 1 SI 2005/2045; Appendix 2 Construction operations (CIS340: Appendices A-C); CIS340: Appendix A; CIS340: Appendix B; CIS340: Appendix C; Appendix 3 HMRC guidance; Factsheets; New CIS FAQs; CIS online: FAQs; Additional technical guidance and advice; Regulation 22; Construction Industry Scheme online: software and online forms; Appendix 4 HMRC contact details; Appendix 5 New CIS forms; CIS300: Contractor's monthly return; CIS300: Contractor's monthly return guidance notes; CIS340: Appendix E; Appendix 6 Employment status indicator tool: an illustration - What it does, Why use it? Case study; Appendix 7 Case headnotes - Express and Echo Publications Ltd v Tanton, Hall (Inspector of Taxes) v Lorimer, Lewis, t/a MAL Scaffolding and others v Revenue and Customs Commissioners, Market Investigations v Minister of Social Security, Massey v Crown Life Insurance Co, O'Kelly and others v Trusthouse Forte plc, Ready Mixed Concrete (South East) Ltd v Minister of Pensions and National Insurance; Appendix 8 Government proposals for the taxation of managed service companies - Background - What are managed service companies (MSCs)? The problem, Proposed solution, Definitions, Tax treatment, Liability for tax due, Wider impact; Table of cases; Table of statutes; Table of statutory instruments; Index

By Rebecca Benneyworth, with contributions by Mike Evans