No vouchers

Under the new CIS, from April 2007 all of the old vouchers such as the CIS23, CIS24 and CIS25 will become redundant. In addition, the annual CIS return will also be scrapped. This at first appears to be an advantage of the new scheme.

However, the current requirements will be replaced by a monthly return. Contractors will have to make a monthly return to the Revenue:

• confirming that the employment status of subcontractors has been considered
• confirming that the new verification process has been correctly dealt with
• detailing payments made to all subcontractors and
• detailing any deductions of tax made from those payments.

The monthly return can be sent either manually or electronically and will relate to each tax month (ie running from the 6th of one month to the 5th of the next). The deadline for submission is 14 days after the end of the tax month. Even if no subcontractors have been paid during a month, contractors will still have to make a nil return. All contractors will be obliged to file monthly even if they are entitled to pay their PAYE quarterly.