Enapps, a leading ERP supplier for SMEs, today announces that its ERP software suite is fully compatible with HMRC’s Construction Industry Scheme (CIS). CIS sets out the rules for how payments to subcontractors for construction work must be handled by contractors in the construction industry and certain other businesses.
Under the scheme, all payments made from contractors to subcontractors must take account of the subcontractor’s tax status as determined by HMRC. This may require the contractor to make a deduction, which they then pay to HMRC, from that part of the payment that does not represent the cost of materials incurred by the subcontractor. The scheme covers all construction work carried out in the United Kingdom (UK), including jobs such as: site preparation, alterations, dismantling, construction, repairs, decorating and demolition.
From April 2016 HMRC will no longer accept paper form submissions, and a company’s two options will be online or via the telephone. According to HMRC figures, between 15 per cent and 20 per cent of affected companies are not yet making online returns. From April 2017 online submissions will become mandatory.
Enapps ERP seamlessly integrates CIS functionality into its business software suite. Construction companies not yet making online CIS submissions will need to begin working towards this, which means implementing a software system that handles CIS submissions or outsourcing this service to a third party.
Ron Martin, Managing Partner, Enapps comments:
“It is important that all suppliers in the construction industry adhere to financial as well as safety regulations. Our construction customers are already taking advantage of our automated CIS function which lets them concentrate on their business and takes any CIS-induced stress away.”