THE Inland Revenue's introduction of transitional arrangements for the new Construction Industry Scheme, which will change the way subcontractors are paid, could be too little too late for Lancashire contractors, according to the Association of Chartered Certified Accountants.

Ilyas Patel, ACCA's spokesman for Lancashire, said: "Contractors are still in the dark over the requirements of CIS, let alone the new transitional arrangements.

"On July 15 the Inland Revenue stated "information will be sent to all contractors shortly". However, the transitional scheme is due to come into effect in little over two weeks.

"Contractors may not even receive the information in time let alone be able to change their administrative systems to cope with the transitional requirements.

"It seems that the Inland Revenue consulted only with the Construction Federation on this issue, leaving many contractors without a voice. Issues such as the implications for software systems, for example, have not been fully addressed.

"ACCA has heard from one contractor that his accounting software supplier was not aware of the transitional changes to the Inland Revenue System and was unsure the existing system would cope."

ACCA is urging any company which uses sub-contractors to contact its local Inland Revenue office to obtain a dispensation from penalties.

"This will allow contractors to make gross payments to anyone whose 714 certificate is valid on 31 July or who can produce a CIS 5 or CIS 6 valid on the date of payment.

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