It can be relatively easy to fall foul of the sometimes complex Construction Industry Scheme tax rules. This can often amount to eye watering penalties and determinations of tax issued by HMRC. It is important that any CIS scheme is operated in the correct manner and from the first opportunity. Often some clients approach us who haven’t even considered this and unexpectedly find themselves falling into this scheme. HMRC use the term ‘deemed contractor’ to describe an entity who has engaged with subcontractors to carry out construction work. Property developers and housing associations, amongst other bodies, can fall into this bracket.
If planning to carry out any type of construction work it is always worth considering the CIS tax implications, if any. Our experts in this field can assist.
If you are already trading and feel like this is something which could capture you then contact us for advice without delay. An unprompted declaration of the error to HMRC is dealt with much more leniently from a penalty perspective.
If you have been unlucky enough to have been caught up in these rules and are currently enduring a dispute with HMRC we can assist in negotiating the way forward. There are often ways to reduce your exposure which are not considered by HMRC in calculating your determinations or penalties.