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Press ReleaseOctober 2006: Employers in the building industry face new tax rules, warns Wingfield SlaterBusinesses in the region employing workers in the construction industry should plan for wide ranging changes to contractors` tax arrangements, warns Sheffield city centre accountants and business advisers Wingfield Slater. Registration cards, vouchers and annual returns will all be abolished when the new legislation comes into force in less than six months time. Contractors will need to verify the details of all sub-contractors with the Inland Revenue. In the July edition of Financial Monitor newsletter, Wingfield Slater gives full details of what business owners must do to ensure they do not infringe the new rules. The Financial Monitor is emailed to Wingfield Slater clients and is also available for anyone to download from its website, www.wingfieldslater.co.uk . Said Peter Newsam,Wingfield Slater tax partner: “The new rules place onerous requirements on all contractors employing building and construction workers. It’s vital that they understand their new obligations. They should start planning now to ensure a smooth transition when the new rules come into force.” Wingfield Slater’s Financial Monitor also points out that the Inland Revenue is already being much stricter when issuing certificates to sub-contractors in the construction industry. It warns that sub-contractors could suffer major cashflow problems if they do not keep up to date with payments of all PAYE, sub-contractor and other income tax and corporation tax payments. This is because if they cannot demonstrate their entitlement to gross payment, tax at 18 per cent will need to be deducted from payments received. Other topics covered in the Wingfield Slater Financial Monitor include details on the new fuel rates on company cars, new rules covering tax relief on life cover, and Government plans to introduce paid bank holidays. |
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