Midlands-based accountants Dains have welcomed HM Revenue Customs' decision to delay implementation of the controversial Construction Industry Scheme.
Contractors from across the Midlands who work in the sector will now have a further 12 months to comply with the new regulations.
Andy McQuillan of Dains said: "Given that the new scheme was scheduled to go live in April, there were serious concerns that businesses would have insufficient time to amend their IT systems and manual procedures or to train staff in the operation of the new scheme."
In the past six months HMRC has issued thousands of letters to contractors and subcontractors, advising them to check the terms under which building workers are employed. And this monitoring looks set to continue.
When the scheme does finally come in contractors will be required to certify they have confirmed the engagement status of all subcontractors included in a monthly return - failure to submit a correct return could result in a £3,000 penalty. There will also be a £100 penalty for failing to make a return.
Contractors must still file returns regardless of whether or not any payments have been made to sub-contractors during that month.
