Editor's comment: Kicking CIS into touch

The rumour mill on the Construction Industry Scheme (CIS) is up and running again. This week, several people have told Contract Journal that they believe HM Revenue and Customs (HMRC) is about to delay the introduction of new CIS. But HMRC is adamant that it will not be delaying things - this time it will happen. And that's likely to be bad news for companies who haven't taken the threat of new CIS seriously enough.

If you've been a bit slow in dealing with any company or employment taxation issues over the summer, your cards could already be marked. Industry experts are warning that any tardiness on the part of companies could be reflected next April, when they could well lose their gross payment status.

For most companies, losing their gross payment status would be a disaster. And that's why new CIS needs to be taken seriously now - and not left until the beginning of April next year.

Leave things until then, and you could find yourself in a difficult situation. For main contractors, checking the employment status of everyone who works for them will take time. And for every firm in the industry, the issue of the company's name will loom large - the fact is, HMRC's new CIS system will only recognise one company name, so if you trade under several names, it's time to get things sorted out.

The implications of the new CIS for construction businesses are serious. Hoping it will go away is a natural reaction - but this is not going to happen.

* Offsite Construction (OSC) is often regarded as the answer to the industry's skills shortage and the slow pace of housebuilding. But how widely have contractors embraced it? CJ is running a survey to find out what contractors think about OSC. All entrants will go into a prize draw with the chance of winning a day's OSC masterclass worth £2,500, courtesy of offsite consultancy Mtech.

Start the survey here; it should take no more than two minutes.

[Contract Journal, 20 September 2006, p 64]