Accountants build on construction expertise

Date: 06 March 2007

NORTH West-based Chartered Accountants and Business Advisors Mitchell Charlesworth has set-up a specialist team to help North West construction companies comply with new accounting rules.

Alan Howard, 31, who joined Mitchell Charlesworth eight years ago, specialises in the use of SAGE applications and he will head up the firm’s new dedicated Construction Industry Scheme (CIS) section.

Mitchell Charlesworth acts for construction companies with turnovers ranging from £1 million up to £20 million right across the region, including firms in St Helens, Widnes, Runcorn and Warrington.

From A pril 6, 2007, contractors will have to verify that any new subcontractors they take on are registered under the new scheme and to confirm their employment status.

Contractors and subcontractors already registered under the existing CIS will not have to undergo the verification process. However, in place of their annual CIS return the HMRC’s new scheme will require contractors to make a return every month showing payments made to all subcontractors.

Rob Davies, a partner at Mitchell Charlesworth’s Widnes office, said: “The HMRC’s changes to CIS are far-reaching and have massive implications for the construction industry – that is why we have set up a dedicated team.

“Alan has vast experience in dealing with construction companies and his knowledge of SAGE systems is second to none, which will mean our clients will benefit from a smooth transition to the new CIS regime when it is introduced in A pril.

“However, time is running out for construction companies which have not yet looked at the changes to CIS to get their accounting affairs in order. Any construction company that ignores the forthcoming changes could be in for a nasty sur prise if they are not careful, finding themselves in trouble with the HMRC.

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