Construction crackdown – Don't get caught out
Since April 2015, employment intermediaries have been required to provide quarterly reports explaining why workers who are on their payroll are not using PAYE. Therefore it is more important than ever that companies have the appropriate documentation proving the self-employment status of the worker, or a sub-contractor certificate.
HMRC nets £154m from construction crackdown
Tax inspector crackdowns on construction have yielded a 17% jump in investigation revenue. The yield from tax compliance investigations in construction hit a record high of £154m, double that of five years ago. The boom is said to come from HMRC cracking down on self-employed workers finding work through intermediary companies.*
This increased yield from these new rules and tax investigations are indicative of just how much HMRC are clamping down on the construction industry which HMRC currently seem to see as an easy target.
Any company which does not provide the correct paperwork runs the risk of paying up to 6 years of PAYE and NIC. On top of that HMRC can charge interest and up to 100% of the tax in additional penalties.
“Failing to pay taxes will not be tolerated and it’s unfair to other legitimate businesses who pay their taxes on time. We are determined to stamp out tax fraud and will not hesitate to work with partners like the Insolvency Service to take action against cheats.”
(Alan Tully, Assistant Director, Fraud Investigation Service, HMRC)
At Cowgill Holloway we excel on providing advice on sensible tax planning opportunities and utilisation of available reliefs. We also advise companies and individuals working in the construction industry on all areas of taxation.
Cowgill Holloway’s advice is based on a thorough understanding of your business with our specialist tax team. We will work alongside you to ensure you are fully compliant and to optimise your tax position. Our fees are simple and clear and will usually be agreed with you in advance.
*Construction Enquirer, 12/01/16
“The expertise of the Cowgill Holloway Property and Construction team over the years has been most helpful and reassuring. They thoroughly understand our activities and through their tailored advice, flexibility and responsiveness are genuinely contributing towards our success.
They have provided invaluable support through our significant growth.
I recommend Cowgill Holloway at every opportunity I can.”
(Mike Banton, Managing Director, Artez Group Ltd)
For more information and a no-obligation chat about how we can help your business in all aspects of policy, process, cash and finance, contact our team today.
The information was correct at time of publishing but may now be out of date.