What to do now

Despite the delay until April 2007 there is clearly a lot to think about. The new system places great emphasis on contractors’ procedures and backs this up with automatic penalties. Things to think about include:

• reviewing the self-employment status of existing subcontractors
• reviewing computer systems/payroll systems to ensure that the monthly ‘payslip’ can be generated in the required format
• ensuring that advice and training is undertaken to ensure a good understanding of the self-employment tests
• ensuring that systems are put in place to cope with the verification process, payment process and monthly return process.

We are here to help you. Please talk to us to discuss the practicalities of implementing the systems that will be required to avoid the automatic penalties under the new regime.