HMRC have recently launched their advertising campaign to inform contractors in the construction industry of the new monthly returns which have to be made from April 2007.

The new scheme will mean that contractors will have to file monthly returns detailing the payments made to subcontractors and details of the tax deductions made, where appropriate. Contractors also have to sign the return to say that they have considered the status of the subcontractors that have been engaged by the business and that they are not employees.

Penalties apply for late and incorrect forms.

Internet link:

HMRC CIS website