In spite of the implementation of the new Construction Industry Scheme (CIS) being delayed for a year by HM Revenue & Customs (HMRC), many in the industry are still not prepared for it.

The CIS changes are intended to make it even more difficult to consider labour-only sub-contractors as self-employed rather than employed.

Jane Buxey, Director of Stone Federation GB, says: "It\'s happening. People have to be prepared." The Federation has set up a helpline to give its members (but only members) information about what they have to do to be ready for the scheme\'s introduction on 6 April next year.

HMRC is expected to collect an extra £180million as a result of the CIS changes from the 23.8% National Insurance contributions alone (11% from the employee and 12.8% from employers).

Carl Whittaker, a senior tax consultant at taxation specialists Qdos Consulting, says: "One small contractor is known to have received a bill for £500,000 in NI interest and penalties because he wrongly thought his 10 men were self-employed."

The main changes under the new CIS are that there will no longer be any need for CIS cards, certificates or vouchers. Instead, contractors have to verify new subcontractors with HMRC. Subcontractors will still be paid either net or gross, depending on their own circumstances, but it will be HMRC, not a piece of plastic, that determines during verification which treatment to use. It is in individuals\' interests to register as there will be a higher rate tax deduction if a subcontractor cannot be found on the HMRC system. Contractors will also have to make a return every month, showing all payments made to anyone who subcontracted to them.