CIS. Designed to help you comply with the new CIS legislation

Transcription

1 50 CIS Designed to help you comply with the new CIS legislation

2 As you probably know, the Government is making changes to the way contractors like you figure out how much tax to deduct from your sub-contractors pay. This may mean more records, checks and extra admin, but there s software to manage it all for you. Sage 50 CIS works with Sage Line to help you to comply with the legislation changes. Will the Construction Industry Scheme (CIS) legislation changes affect me? Yes, the legislation changes will affect you: If you have any dealings with current CIS and continue to use sub-contractors Whether you employ a large number of sub-contractors or just a handful No matter how often you pay your sub-contractors

3 What are the changes? The old way of filing tax returns and validating your sub-contractors is changing. The main changes are: 1. CIS registration cards, tax certificates and vouchers are being replaced by: Additional sub-contractor information such as a new Unique Taxpayer Reference (UTR) and National Insurance Number (NINO) to identify sub-contractors A new verification process will be introduced to validate details with HM Revenue & Customs (HMRC) to determine the sub-contractor type and ensure you are applying the right deduction rate 2. There are new monthly procedures: New monthly tax returns to HMRC can now be submitted online Monthly payment statements to sub-contractors 3. Year-end tax returns are no longer required 4. There is an increase in tax rates from 18% to 20%, which will apply to any payments to sub-contractors with standard net tax rates from 6th April 2007

4 How will Sage 50 CIS help you? Sage 50 CIS is a completely new module within Sage Line , to help you to comply with the new CIS legislation changes You can record and submit all the information you need to validate new and existing sub-contractors details and ensure you deduct the correct tax rates You can electronically submit sub-contractors details including Unique Tax References (UTRs) direct to HMRC, speeding things up when verifying new sub-contractor details Your Government Gateway account information and sub-contractor information is stored securely in one place Your monthly tax returns are automatically produced and checked for you and can be submitted online to HMRC, reducing your paperwork You can keep a historical record of all transactions and your CIS tax details are automatically calculated Your monthly sub-contractor payment statements are also automatically produced so you have all the necessary paperwork to comply with the changes Your payments, monthly returns and records will reflect the increase in tax rates for standard payments from 6th April 2007 HMRC have successfully tested and recognised Sage 50 CIS to both submit the Monthly Online Tax Return (CIS 300) and perform electronic verification of sub-contractor information. Visit

5 Sage 50 CIS in a nutshell Recording the right information You will need to record key information about your sub-contractors to enable you to submit your monthly returns and statements, and to prove you have verified new sub-contractors details. When you install Sage 50 CIS, additional fields will be activated in Sage Line to enable you to keep a central record of your sub-contractor details. You will need to record sub-contractor s company name, Unique Tax Reference, National Insurance Numbers, company status, verification number and date. Sage 50 CIS will also keep a record of all transactions and submissions, to ensure you pay the right amount of tax for the payments you have submitted. Save time verifying new sub-contractors Sage 50 CIS makes it easy for you to verify new sub-contractors. You simply enter their details and then send the information online from Sage 50 CIS directly to HMRC. HMRC then match your sub-contractor details, confirm their status and return their verification reference number and date online, which can be automatically updated onto your records.

6 Sage 50 CIS in a nutshell Automate your monthly tax returns With Sage 50 CIS you can automate your monthly returns and submit them online to HMRC. When you enter details of sub-contractor payments, your monthly return is created automatically, so you just need to check the details and send it to HMRC. When you use the online submission module to submit your monthly returns you will benefit from an extended deadline giving you an extra couple of days to complete your returns. Sage 50 CIS will also help you to check your details prior to submission, to make sure you get it right every time. Monthly payment statements for sub-contractors are done for you Payment statements detailing the monthly payments and tax deductions for each of your sub-contractors are also automated. Once you ve completed your monthly return, you simply or print out each of your payment statements. Getting up and running Sage 50 CIS is easy to set up, and upon installation simply activates all of the additional fields within Sage Line All of your CIS information is stored and accessed

7 centrally within Sage Line , making it quick and easy to create and track transactions, tax payments, sub-contractor information and comply with the new CIS legislation. Complete support if you need any help or advice If you have any questions or experience any problems adhering to the new legislation, you have the peace of mind of knowing that complete support and help is available. Sage technical experts are on hand to help you with any issues you may have and you can access a variety of other information and advice to support you and your business. SageCover support for Sage 50 CIS is only available as part of Sage Line 50 SageCover membership. If you would like this information in an alternative format, please contact Customer Care on or access@sage.com

8 To find out more about Sage 50 CIS, please contact your Sage Business Partner: