CONSTRUCTION INDUSTRY SCHEME (CIS)

The Inland Revenue requires the County Council to account for Construction Industry Tax (CIT) due. This requirement extends to all payments made using County Council funds and therefore includes all schools funded by the Council. Because of this requirement schools are not able to pay invoices locally but have to send them to the Cashier's Office for payment. This arrangement has operated for a number of years.

Concession
Schools may pay locally any invoice whose total does not exceed £500 (excluding VAT). Schools are asked annually to renew an undertaking not to abuse the concession.

Changes to The CIT Scheme
Changes have been made to tighten the regime. All contractors and sub-contractors in the construction industry have to register with the Revenue. A contractor who is not registered with the Revenue cannot be paid even though he may have done work. However, the scheme is due to change from 6 April, 2007 and guidance will be sent as soon as details are available.

A procedure note is attached for CIS including a standard condition to all orders for building work warning the contractor that he will not be paid unless he is registered with the Revenue. This condition must be included on all orders for construction works.

The procedure note tells you which invoices are affected by the CIT Scheme. All these invoices, unless covered by the concession, must be sent to the Cashier's Office for payment.

Undertaking
Please print the concession form attached, completing your school name, location code and signature and return to Children's Services - Finance.

Please note: this form will also be used as an authorised officer form for audit purposes.

Further Advice
Further advice can be obtained from your Finance Support Officer.

Procedure Note

Concession Form