Workers under the Construction Industry Scheme are being targeted by HMRC.
The Government believes that approximately 300,000 self-employed sub-contractors are engaged under a ‘contract of employment’ and should be taxed under Pay As You Earn (PAYE), according to the scheme’s rules and regulations.
To comply with the rules we expect HMRC, formerly the Inland Revenue, to be carrying out compliance checks on Contractors to check the status of the sub-contractors they have engaged.
HMRC carry out Annual Reviews within the scheme on sub-contractors who have gross payments status. From this, HMRC will identify which Contractors the sub-contractor were engaged by.
As a Contractor, HMRC requires that you both fully understand and fully comply with your responsibilities and obligations under its rules and regulations.
Beware of enormous penalties and consequences involved in not complying.
Under the rules and regulations HMRC require that you as a contractor:
Failure to comply can result in you, as the Contractor, being liable for the tax that should have been deducted, plus interest and penalties.
In addition, the rules require you to submit monthly Returns on time. Failure to do so will incur penalties.
Are you complying with all of these CIS requirements?
IF NOT, CONTACT US FOR ADVICE
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Call KinsellaTax NOW on 0800 471 4546 to get all your records in order.