XU Magazine - Issue 28

Page 38

Tackling Construction Industry Scheme abuse The UK Government is keen to tackle the abuse of the Construction Industry Scheme (CIS) As CIS deductions are a large part of many payroll and bookkeeping professionals’ day-to-day lives, it is sensible to report on this logically, culminating in the action that employers will have to take from April 2022. This article is

F

rom April 2021

At the March 2020 UK Budget, a consultation entitled ‘Tackling Construction Industry Scheme Abuse’ was published. This proposed further measures on the perceived abuses of the Scheme already tackled in part courtesy of provisions in the Finance Act 2021, Schedule 6. In short, one of the measures in Schedule 6 gave HMRC the powers to amend the number of CIS deductions claimed on a sub-contractor Employer Payment Summary (EPS) where they identify or suspect that inaccurate amounts have been claimed. It is worthwhile reading HMRC’s Policy Paper dated 26 March 2021 for full details of the

@ICBUK

Ian Holloway, iRealise Ltd Payroll Advisor at ICB UK Ian Holloway is a highly respected payroll practitioner, writer, advisor and trainer. He has worked in the payroll profession for over 30 years and is now Payroll Consultant at i-Realise, an independent change management business operating in the HR & payroll space. Ian is ICB’s resident Payroll Advisor and hosts regular payroll webinars for ICB students and members.

changes to the Scheme and the possible impacts on payroll and bookkeeping professionals.

not recognised or the client is ineligible to claim CIS deductions for that particular year.

From April 2022

Payroll/bookkeeping professionals’ action

To further support the perceived abuse, on 4 August 2021, HMRC announced changes to the CIS deductions suffered, specifically regarding the data to be provided on the EPS. From the tax year 2022/23, a new Corporation Tax (CT) Unique Taxpayer Reference (UTR) field will be added to the EPS. This must be completed if there is a deduction suffered value greater than £0.00. If it is not completed and declared in the correct format, the EPS will be rejected at HMRC. Further causes for rejection are if the CT UTR is

There are several immediate take-aways from this HMRC announcement: • Software developers should be aware of the announcement from the Software Developer Support Team. Double-check that they are aware • The HMRC announcement says that the ‘Real Time Information support for software developers’ will be updated with the necessary software information. At the time of approaching your software developer, check that they are aware of this • From April 2022, if there are CIS deductions suffered and declared, you will need the 10-digit Corporation Tax Unique Taxpayer Reference. Gather this information ahead of April 2022 for clients

Find out more... Ian will be hosting payroll sessions at the Bookkeepers Summit 2021

38 / Issue 28

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Xero Visit the Xero App Store

4min
pages 156-157

XERO APP PARTNERS OF THE MONTH

3min
pages 153-155

NEW XERO CONNECTED APPS

5min
pages 150-151

EVENTS Terrapinn

3min
pages 148-149

EVENT Trenches Summit

2min
pages 146-147

CLASSIFIEDS Xero connected Apps

2min
pages 142-145

FOCUS: MENTAL HEALTH Tim Hoopmann

6min
pages 140-141

NextMinute NextMinute and the Personal Touch

3min
pages 136-137

Sapaad The Restaurant POS of the Future is Fully Integrated

5min
pages 138-139

CloudPayroll Payroll for Withholding Payer Number

2min
page 135

simPRO The whole package Providing clients with an end- to-end cloud-based technology solution

6min
pages 120-123

expensemanager How local accounting

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pages 116-119

Compleat Software All About The Data

5min
pages 114-115

ApprovalMax Introducing the ApprovalMax Budget Checking feature

3min
pages 100-101

WorkflowMax Combine your expertise with apps to take your clients to the next level

7min
pages 92-94

MarketFinance Getting in control of recovery for a stable future

8min
pages 84-87

Tidy International Embracing financial

7min
pages 88-91

AutoEntry Importing Bank

5min
pages 80-83

PayPal The PayPal Payments Advantage And Why Small Businesses Are Leveraging Buy Now, Pay Later Options

4min
pages 78-79

Practice Ignition 7 Simple Steps to

9min
pages 74-77

Cloudsolve Ten years of e-commerce growth in just 90 days

5min
pages 72-73

ExpenseOnDemand How do you choose an expenses solution that is right for

5min
pages 62-65

AdvanceTrack Outsourcing

7min
pages 66-69

Senta Anti-money laundering - everything you need to know about AML

5min
pages 58-59

Wolters Kluwer How to solve the top three challenges accounting and tax professionals face at tax time

5min
pages 54-57

Spotlight Reporting Recruiting and Retaining an A-Team: Best Practices

9min
pages 46-49

HR Partner How to Onboard New

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pages 44-45

G-Accon G-Accon for Xero Practice

7min
pages 40-43

Hydr Don’t wait to get paid

3min
pages 22-23

Flagship Reporting Why automating your

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AccountancyManager AM’s year so far: 3 integrations, whitelabelling and more

3min
pages 20-21

AREX Markets Ethics, sustainability and accounting for the post-Covid Accountant

4min
pages 12-13

infoodle Email Marketing for

5min
pages 26-29

ICB UK Tackling Construction Industry Scheme abuse

2min
pages 38-39

Chaser The importance of end-to-end credit control in one

5min
pages 32-33

Emersion The Subscription Economy

2min
pages 24-25
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