For many years, Hudson Contract has partnered with Lloyd Dowson Chartered Accountants to deliver CIS Experts, a service designed to help labour-only subbies pay the correct amount of tax.
Based on 738 tax returns filed by CIS Experts on behalf of freelance builders for 2016/17 tax year:
Relating these figures to the whole of the construction industry, based on the Office for National Statistics reporting 801,244 individuals that worked either fully or partially as self-employed, CIS Experts calculate that the average total amount owed to freelance builders, taxed under CIS, at any one time is £693 million.
Hudson Contract Managing Director Ian Anfield comments: “The fact is, those who pay tax under CIS are giving the Treasury an enormous interest-free loan. It’s been this way for years. And that’s even before you consider that not everyone will put a claim in each year and some may never claim a tax rebate. The true figure is probably much higher, due to the way tax is deducted and rebates are claimed by those who work under CIS.”
Chartered Accountants, Lloyd DowsonMore from this expert
The latest version of this key report highlights how freelance builders play a crucial and unrivalled role in boosting economic efficiency and productivity in the construction sector.
Plus debunks the myth that freelancers in the construction industry are exploited.Access the full report here