1. Anyone currently registered as CIS will stay CIS from 6 April 2007 providing they stay with the same contractor. He will already have had your status confirmed as ‘self-employed’ and been told to pay you under CIS. So, in most cases, nothing will change.
  2. Anyone changing contractor will be assessed under the new regulations.
  3. When you start with a new contractor, he will have to register you with HMRC, who will decide if you are CIS by asking him a few questions about how you go about your work.
  4. If it is seen that you are just an employee then you will become PAYE. If it is seen that you are CIS, then you carry on as now, but you won’t get a CIS25 voucher.
  5. Instead, under the new rules, you will now get a MONTHLY PAYSLIP OR STATEMENT OF YOUR EARNINGS. These New Payslips/Statements are even more important than the CIS25 vouchers, so you must not lose any. You must keep them safe as you will need them ALL to claim your rebate in April. As before, the Revenue will be able to track any payslip you don’t declare.
  6. Remember, the new tax rate on CIS has increased from 18% to 20%. However, if you fail the verification process, a higher rate of 30% will be deducted.

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