Workers under the Construction Industry Scheme are being targeted by HMRC.

Construction industry tax scheme

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 schemes 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.

Are you ready for a Compliance Check from HMRC?

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:

  • Verify your sub-contractors with HMRC
  • Check that you are not engaging workers under a contract of employment
  • Pay your sub-contractors in the right way – make deductions if necessary
  • Pay deductions to HMRC
  • Give sub-contractors deduction statements
  • Send monthly returns to HMRC
  • Keep proper and accurate records

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 Construction Industry Scheme requirements?

IF NOT, CONTACT US FOR ADVICE

What can KinsellaTax offer?

  • We offer you a Construction Industry Scheme health check.

  • We will review all of your records and processes.

  • We will review the terms of engagement for your sub-contractors.

  • We will act on your behalf if HMRC pick you up for a Construction Industry Scheme compliance check.

  • HMRC should not be allowed to come to your premises nor should you meet with HMRC.

  • We arrange for HMRC to review your records at OUR offices, not yours.

  • HMRC will be required to put their questions to, and correspond with us.

  • You can get on with running your business whilst we deal with HMRC.

We understand the rules and regulations of the scheme. Don’t bother yourself with it… leave it all to us.

Our staff are fully experienced in HMRC tax investigations.

Call KinsellaTax NOW on 0800 471 4546 to get all your Construction Industry Scheme records in order.

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