New software has been launched by payroll experts Qtac to help companies conform with the CIS obligations which come into play in April 2007

The software gives small and medium-sized businesses the ability to fulfil their mandatory obligations to HMRC quickly and efficiently, avoiding costly penalties.

It is included as an add-on with the existing Qtac packages Payroll Professional and Payroll Manager, both of which can be downloaded from the Qtac website. 

Qtac Director Peter Prater said: "The new CIS reforms will affect anyone who employs subcontractors and will impose new obligations on employers.

"The responsibility is with the employer to be up to speed with the regulations and to make sure they have the systems in place to conform.

"It will be up to the contractor to check with HMRC whether payment to any subcontractor should be net or gross, and they will be obliged to make monthly returns summarising payments made under the CIS.

"There are stiff financial penalties for any business which fails to meet its requirements, or falls behind the monthly deadlines.

"Our software has been specifically designed to make life as easy as possible for the employer while ensuring all the necessary obligations are fulfilled on time and to HMRC standards.

"It is also compliant with the last minute 20 per cent tax adjustment."

Qtac has been designing and managing award-winning payroll software since 1994. Its customers range from sole traders to large multi-national bluechip organisations.

Bristol-based roofing company S & J Roofing Ltd is one of the businesses that will benefit from the new software.

The firm offers a commercial and industrial roofing service throughout England and Wales and employs up to 20 subcontractors at any given time.

Director Jon Saunders said: "We knew the CIS reforms were imminent and have been actively looking for payroll software which would help us manage our HMRC responsibilities.

"It would be a huge and time-consuming task to make our submissions manually. Over the last two years, there has been a shift towards people being self-employed in the construction industry, which means the reforms will place a burden on companies like ours unless they have a system in place."

Picture caption: Qtac directors Mark Smith (left) and Peter Prater prepare for the CIS reforms at a Bristol construction site.