Building and construction contractors
The construction industry is governed by specific legislation known as CIS (Construction Industry Scheme). This gives crucial guidelines on determining how much tax you pay and when you pay it.
Gross or net payment bases apply, but you need to be careful if you operate a PSC (Personal Service Company) that’s only a nominee, as it can mean you must also have gross payment status. (If that makes no sense to you, give us a call and we’ll translate.)
CIS also involves completing and filing CIS returns and maintaining compliant documentation. And, as it’s an evolving legislation, things are still changing.
We expect that HMRC’s new attack on the CIS market and the self employment status construction contractors are currently using (many of which don’t accurately reflect the way they operate) will result in many contractors looking for other ways to work.
For example, we have recently been working with a rail client to look at the way they handled their contractors, including a number of people operating a self employed set up. We helped them to reassess their relationships with contractors and establish a more robust and compliant solution, without it becoming a taxation nightmare.
We have such technical and practical experience in defining contractor status (especially with our experience in IR35) that we are often asked by property developers, construction companies and contracting businesses to give CIS guidance and support.
As far as you’re concerned, our no nonsense approach and industry expertise means we will make sure you operate compliantly and tax efficiently.
