HMRC has set a very high level of compliance for contractors and sub-contractors. CIS can be very burdensome. Woodford Norman can provide expert advice on the scheme covering:
We can manage the CIS for you and we offer a friendly, professional service, competitive prices.
Most people in the construction industry are aware that failure to comply with the regulations will result in harsh penalties and it is very difficult to get HMRC to take into account any mitigating circumstances.
A key part of the CIS is that the contractor has to make a monthly declaration that they have considered the status of the subcontractors and are satisfied that none of those listed on the return are employees. HMRC can impose a penalty of up to £3,000 if contractors negligently or deliberately provide incorrect information.
Remember that employment status is not a matter of choice. The circumstances of the engagement determine how it is treated.
HMRC have been making robust efforts to re-classify as many subcontractors as possible as employees. They have felt that too many have been claiming to be self employed for tax benefit purposes, but are in fact really employees. HMRC have asked the courts to consider a large number of cases in recent years. They have challenged people on a variety of different factors. The tests which are applied to decide whether or not a worker is employed or self-employed include:
If you are starting out as a contractor / sub-contractor, or are an established business, it makes sense to talk to us.
Call Woodford Norman on 0116 2886689 to find how they can provide you with a premier CIS returns Leicester service.