PCG ALL SET TO SEE CONSTRUCTION WORKERS THROUGH TURBULENT TIMES Wednesday 11 April 2007 PDF Print - PCG launches PCG Construction as contractors face new Construction Industry Scheme London, 11 April 2007: The Professional Contractors Group (PCG) today launched PCG Construction, www.pcgconstruction.org.uk, in response to Her Majesty’s Revenue and Customs (HMRC) announcement on 6th April 2007 when the Government introduced the Construction Industry Scheme (CIS) which will see contractors and their status come under fire. PCG Construction has been developed in collaboration with construction tax experts, Accountax, to help protect construction industry contractors and demystify the new CIS legislation for them as self-employed workers. The legislation will have a huge impact on the industry which boasts some one million workers made up of 800,000 self-employed subcontractors and 200,000 contractors. Under the new legislation, the status of contractors will be under scrutiny as HMRC plans to raise additional taxation from the construction industry and has drafted in extra admin staff and status inspectors to scrutinise contractors’ accounts. Now, HMRC can challenge the tax status of contractors who they regard as ‘disguised employees’ of their clients, which could lead to contractors being liable for added tax and national insurance. Under CIS: • There will be no CIS cards and contractors will have to obtain subcontractor details • CIS23, CIS24 and CIS25 vouchers will cease to exist • Existing gross/net payment status will be transferred to the new scheme • There will be three types of payment status: - Sub-contractors who are paid gross - Sub-contractors who are registered for payment under deduction at 20% - Those who are not registered to be either gross or net payees and from whom the contractor must deduct 30% tax • There will be no annual CIS return • A new status declaration will come into force • Penalties will be applied for omissions, failures and delays Commenting on the new scheme, David Smith, MD of Accountax, said: "The new CIS rules will present massive challenges for everyone in the construction industry and contractors will need to be well advised and on top of their game to meet their new legal obligations. Contractors will have to be very careful about how they administer the CIS scheme so that they do not fall into the many traps and financial penalties that await them. We have worked closely with PCG to develop PCG Construction which will support contractors and help them to navigate their way through the new scheme so that they stay within the law." PCG was established in 1999 as a not-for-profit organisation to represent self-employed workers. Over the last six years it has grown to become a strong lobbying organisation committed to voicing the concerns of contractors in Parliament and providing sound advice on self-employment issues. One of PCG’s members, Leigh Mount, who has worked in both the Marine Civils and offshore construction industry for 27 years said: “The new CIS legislation has the potential to send a wave of panic and desperation through the construction industry. However, I am confident that PCG and its new construction service will be there to support contractors in the face of the latest announcement and give sound financial advice and business support to construction workers and their families. Contractors simply want to get on with their jobs at the sharp end – more administration will only hinder that.” From £120 per year, PCG Construction members can benefit from: • Free tax and 24hr legal helplines, open 365 days • Information guides on regulations affecting contractors • The industry’s most comprehensive Professional Expenses Insurance to cover the cost of a tax inspection or dispute • Insurance to cover jury service • Access to a host of member discounts on mortgages, healthcare, banking, travel, contract reviews, credit management, vehicle purchase and business supplies. Julie Stewart, Director of PCG said: “Once again, HMRC is targeting the small business person and if construction workers are not sure of all the facts, they could come unstuck. The contracting sector of the UK workforce is the fastest growing sector as one in seven workers now choose to be self-employed so they are entitled to a voice as important contributors to UK plc. PCG has been supporting contractors for a number of years and I would like to reassure construction workers that they will be in safe hands with us as the new legislation comes into force. We already have evidence of self-employed workers being told that they cannot work unless under PAYE after April 6th if they cannot produce proof of CIS registration.” Note to editors: About PCG: The Professional Contractors Group (PCG) was formed in May 1999 to provide independent contractors and consultants with a representative voice in opposition to the original IR35 proposals. Since then, PCG has evolved from being a single-issue campaign group to being a fully fledged, not-for-profit professional body representing knowledge workers who choose to be self-employed. PCG members work in a wide variety of sectors including oil and gas, engineering, information technology, management consultancy, marketing, telecommunications, construction and pharmaceuticals. About Accountax: Accountax is a firm of chartered tax advisers who specialise in tax status and construction problems. For further information: Michele Bayliss Email: email@example.com Tel: 01273 475672 Mobile: 0777 937 2106 This press release was distributed by ResponseSource Press Release Wire on behalf of Michele Bayliss PR in the following categories: Business & Finance, Construction & Property, for more information visit http://pressreleasewire.responsesource.com/about.