We are hearing from both existing and potential clients of an increase in HMRC inspection activity across the construction industry, and as the four government consultations on employment status draw to a close, what is the best way to both stay out of trouble, and what’s in store?
We are all familiar with the issues surrounding employment status and tax that have dogged our industry for years, if not decades, and I admit that here at EEBS we could be accused of repeating ourselves on the subject! As the (previously discussed) government consultation papers around self-employment and the gig economy draw to a conclusion, the reality will be that changes to the rules governing employment status are inevitable, it is simply a case of when, not if! The likelihood is that it will be sooner, rather than later. But how do you remain compliant if you unlucky enough to have that letter drop through your door scheduling an HMRC compliance visit between the new regulations being published, and now?
Well, again at risk of repeating ourselves, if you engage your sub-contractors on a day rate without a written contract, if you provide the plant and materials, and if they don’t work for someone else, then you better get your ducks in a row – and quickly!
Using a construction intermediary is definitely a good solution, but please take my advice and opt for a supplier that provides a bespoke solution based on your actual working practices. For example, a simple “one size fits all” approach, such as “if he has a CSCS card then we’ll pay him through CIS” is absolutely not going to be compliant!!
Contact EEBS for professional CIS payroll advice 01245 493832 or firstname.lastname@example.org.