Construction Industry Solutions � What Cis Can Do For Your Business

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.

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Future Looking Brighter For Construction Industry

The construction industry in the United Kingdom employs approximately 1.4 million people and includes 186,000 SME’s. Now it is an arguable fact of any economy that one of the first signs of a healthy economy is a strong and vibrant construction industry.

Taking this into account I guess that means that things are on the up as far as the British economy is considered?

Well not necessarily as we have a small intermediate problem to get over called interest rates I suppose, but by and large, a vibrant Construction Sector is an indicator that things are getting better. The Logic here is that if people have money to pay for projects then they have money etc.

Now it is either this or you have a government pumping massive amounts into a recession hit economy trying get at least one of the key components working. The knock on effect being that if you get that working it will help jumpstart other parts of the economy as well.

The latter point may have some merit but the real issue is that, though the construction sector might be improving it is still faced with quite major issues. It has to overcome these in order to make sure that it is in a good enough position to move forward with confidence.

The industry has to develop a long-term strategy if it’s to avoid the perennial boom and bust cycle that makes the industry re-active as opposed to pro active.

That having been said, according to PricewaterhouseCoopers in their recent global CEO survey, construction industry CEOs are more optimistic. This is good when you consider the issues that the industry is had to face in the last two to three years. One of the major issues as far as the SME sector was concerned about was compliance with the HMRC Construction Industry Scheme.

The idea of this scheme was to effectively root out employees masquerading as self-employed subcontractors and as a result avoiding NIC and Tax Payments.

Now this is an issue that the construction industry has had massive problems with over the years and to be fair as an industry it is cleaning its act up.

Gone are the days when smaller construction companies could turn a blind eye to regulations and hence almost pay employees on a cash in hand basis and by default remove themselves from their obligation to pay the relevant tax and national insurance.

The new scheme which was fully implemented in April 2007 has imposed an additional burden on policing tax status on employers who are already disappearing under considerable amounts of red tape. Every employer / contractor will have to make a monthly return within 14 days of the month end.

In this return they will have to include all the pertinent details of payments to subcontractors and details of any deductions from payments to subcontractors. This will act as a form of declaration confirming that employment status has been considered and a declaration that the verification process has been applied correctly.

The final kicker as far as employers are concerned is that if they file their returns incorrectly or late they get hit with a fine. An incorrect return effectively makes the employment status incorrect so it is important to get the information right first.

As per usual The Inland Revenue were very quick to point out that actually this is an already existing requirement and shouldn’t be considered an onerous task as the information should already be in existence.

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Ten Tips For Staying Employed In The Construction Industry

Ever wonder why some in construction manage to work year-round while others seem to bounce from contractor to contractor? “What’s their secret?” you might ask. Are they just lucky? Perhaps, but there are some things you can do to even the odds.

Did you know that most Foremen know exactly who they are going to let go weeks before they ever hand out a pink slip? It’s a standard practice in construction to make a “Lay off List” with the names of the workers on a crew in order of production. Call it a “Head Count”, a “Lay off List”, a “Totem Pole”–call it whatever you like, but you’re on it. The real question is, “Are you on the top or the bottom”?

Often a Foreman will be told, “Lay off three workers” and given only a moment to make the decision. The names on the bottom are the first to go. You may not be aware that it’s a fluid list and that names move up and down as production increases and decreases.

By the way, your Foreman’s not the only one deciding who stays and who goes. It may be a Project Manager or even a customer that may see you leaning against a ladder and make a split second evaluation of your work ethic. It’s not fair. That’s for sure, but unless your reputation as a hard worker precedes you, it might be too late for anyone to step in and rescue you.

Some will work on many jobsites and somehow manage to miss the lay offs. Is it because they’re luckier than the next person? No. It’s just that they know the ten tips for staying employed in the construction industry.

1) Walk with a Purpose- Don’t meander around on a construction site.
2) Pack a Lunch- You’ll save money, be healthier and live longer.
3) Show up Everyday- You’ll outlast those who don’t.
4) Show up On Time- This one really pays.
5) Be Flexible- Be prepared to do a variety of tasks, even sweeping.
6) Update your Skills- Take industry related classes.
7) Be Reachable- Buy an answering machine or cell phone with voice mail .
8) Have Reliable Transportation- Buy the best vehicle you can afford.
9) Have A Positive Attitude- There’s no such thing as “can’t” in construction.
10) Look the Part- Dress like a professional tradesman.

Well there you have it; ten tips to staying employed in the construction industry. They may seem obvious, but if that’s the case why are so many workers caught in the rut of constantly being let go? If you’re fortunate enough to work with some of the best tradesmen in the field, you’ll notice that they seem to have these qualities. Consider yourself lucky. Not everyone has the pleasure of apprenticing with such professionals. If you follow these simple steps, you will stay employed longer, earn more money and avoid having to tell your family that the holidays are going to be tight this year. Still, it’s a good idea to save a little money for those slow periods.

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