Pegasus Construction Industry Solutions is a piece of software specifically designed for the construction and allied industries. It gives you complete control over all aspects of contract management, costing, timesheets through to payment applications and VAT invoicing plus much more.
The construction industry suffers from severe cost overruns and finds it hard to work within a strict deadline, demonstrating that the need for an industry driven software is extremely overdue. This software is needed to ensure that tasks and construction projects are delivered on time and done so within budget.
Construction Industry Solutions conforms to the legislations that are set out by the HM Revenue and Customs, otherwise known simply as HMRC. One important function of Construction Industry Solutions is that the subcontracts ledger combines the function of the purchase ledger with the regulations and requirements of HMRC’s Construction Industry Scheme. This ensures that subcontractor payments can be entered and when the payment is approved it is possible to produce a payment certificate, which can be sent to the subcontractor along with payment.
One thing that needs to be kept in mind however when it comes to Construction Industry Solutions is the new legislations that are now in place regarding tax returns. The main aim of changing the legislation when it comes to the construction industry is to encourage companies to submit their tax returns online. This comes as a disadvantage to the construction industry as systems and software will need to be updated to conform to the new legislations. These changes are as follows:
�CIS Cards and Certificates will no longer be used, instead contractors must verify that any new subcontractor is registered with HMRC. This can be done online.
�Subcontractors will still be paid net or gross of tax, but HMRC will specify which, as part of the verification process.
�There is also a higher rate tax deduction of 30% that can be assigned to subcontractors if they cannot be matched to records on the HMRC system, as part of the verification process.
�Vouchers and Year End returns will no longer be required; these will be replaced with a CIS300 Monthly Return which can be filed online, on paper or as an electronic submission. This details payments and deductions made to all subcontractors. Even when there have been no payments made to subcontractors in a month, nil returns must be made.
�The CIS300 Monthly Return requires a declaration to be signed that states that the contractor has checked the employment status of each subcontractor, and that payments have not been made under contracts of employment.
�Most subcontractors that are registered under the existing CIS rules will automatically be transferred over to the new system and will not need to re-register.
�Failure to submit the CIS300 Monthly Return on time will result in a penalty being charged, based on the number of subcontractors on the late return. This penalty repeats for each month that the return is late. A late submission of a nil return automatically attracts a 100 penalty. HMRC also states that if the return is received back late, the contractor’s own gross status as a subcontractor may also be at risk.