When the new scheme comes in on the 6th April, HMRC online services should be updated to include a link to CIS online whereby all forms etc can be completed and submitted online although the manual docs can be filled in if preferred at present.  Due dates will co-incide with PAYE i.e. all subcontractor statements and HMRC monthly returns must be submitted by the 19th of the month.

If you require any further information on how the CIS scheme will affect you then please contact your client manager alternatively visit http://www.hmrc.gov.uk/new-cis/

Most of you that use Sage are undoubtedly familiar with the Profit and Loss Account report. If so, you should have a reasonable understanding of how well your business is performing on a month-by-month basis.

But whilst this information is useful, it could be more useful if you have something to compare it to. The Prior year report shows exactly the same information on it as the profit and loss account but also shows the same figures for the same period for the previous year and for the previous year to date. The easy comparison that this allows will enable you to identify any trends within your business (good or bad) and potentially enable you to nip problems in the bud.

If you need help improving the quality of your monthly management accounts, please contact your client manager who will be pleased to help.

We understand that a number of businesses have received penalty notices from HM Revenue and Customs for £900.

If the scheme is dormant, you should be able to avoid paying the £900 penalty because it says in the HMRC guidance that you do not have to complete a P35 if you are sent one and it is not needed (unlike a Self Assessment Tax return) e.g. there is nothing to complete because there are no employees.  You just need to inform them, but it does not give you a date you need to do this by.

If the scheme is nil, for instance only the directors are taking the basic salary, then you will still need to pay the £900 because P14s would need to have been sent.

For further information please contact your client manager or our accounts supervisor Holly Startup.