From 6th April 2007 if you hold a CIS4 card and suffer tax deductions at source, the rate of deduction is increasing from 18% to 20%.  You will no longer receive CIS Vouchers from the contractor you worked for but should receive a statement instead, which should be retained for use when preparing year-end accounts.

For contractors:

Are you happy that all the subcontractors working for you are definitely self-employed and should not be paid via the PAYE system with tax and NI deductions at source?

Although the rules for using subcontractors have always included consideration of whether they should be paid on an employed or self-employed basis, this will now be looked into much more closely by HMRC under the CIS changes coming in from 6th April 2007. 

It is important to apply the correct payment method otherwise penalties could be incurred so if you are unsure you can either fill in HMRC's online status indicator (the result of your enquiry will be held on their records and must be adhered to) alternatively you can contact your client manager or speak to Janice Offer at our offices and we can discuss the individual circumstances and advise further.

Next weeks email newsletter will inform you about the new compliance measures in place for the CIS scheme. 

Like many business owners, you are probably working harder than ever within your business, but are likely to be overlooking your personal financial situation.  You may feel that you are working hard for the purpose of achieving your personal aspirations, however, in reality, you could be better off – both in the short and long-term - by simply planning better and restructuring your affairs!

The new comprehensive Wealth Planning A4G session could provide you with an opportunity to take some valuable time out and effectively review your entire financial situation. It could prove to be the most profitable day’s work of your life! 

If you are interested in attending the Personal Wealth Check session at special introductory rates, please contact your client manager or for further information please email Cheryl@a4gsolutions.co.uk

If you would like a laminated copy of our annual budget newsletter or know of anyone else that may like a copy please email Cheryl@a4gsolutions.co.uk and we will be happy to supply you with these.