Now that the new Construction Industry Scheme (CIS) is upon us we have set out a number of reminders for contractor clients. There is also a note of new rules for self employed persons working at home, changes to the VAT cash accounting scheme, and finally a short summary of the increases and decreases in corporation tax and income tax rates announced in the Budget March 2007.
Construction Industry Scheme – D-day has arrived!
The new tax regime for contractors will commence the 6 April 2007.
We have summarised below those issues that need to be dealt with now by all parties affected.
Don’t forget that from 6 April 2007 the amount of tax stopped will increase from the present 18% to 20%.
If your old style certificate has expired on or before the 31 March 2007, and you have not renewed before the expiry date, contractors will be obliged to stop tax from your earnings after 6 April 2007 at 20%. Your reme