Over the past 12 months, Hudson Contract has noticed a significant rise in the number of compliance reviews being carried out by HMRC nationwide, either by way of a visit to a company’s headquarters so an Inspector can review the records in person, or via email correspondence and questionnaires.
Our Compliance Manager Dan Davies explains: “Employment status is very high on HMRC’s agenda, and clearly, a big trigger for a review is when they see a company is paying subbies through CIS rather than employing them directly. Firms can be identified when their accounting and reports are scrutinised, or as a result of attention from the VAT specialists.
Of course, the good news for Hudson Contract clients is that the responsibility for employment status lies entirely with us.
“But there also seems to be a growing trend of inspections being triggered for other areas of CIS compliance. We are hearing that more and more inspections are being triggered due to simple errors, and the improper application of CIS.”
In our experience these errors are caused not by a company’s desire to cheat HMRC but by a simple misunderstanding of the scheme. Nevertheless, they can prove costly as HMRC are claiming back what they deem to be unpaid tax through deduction.
But you might be interested to know that we are happy to carry out a full review of your CIS processes and advise on the correct management of the scheme, to ensure you are fully compliant with ALL requirements of the scheme – not just the payments handled by Hudson Contract.
There’s no charge for this service. Please contact us if you’d like to know more.
HMRC is getting even tougher on false self-employment in construction. So using a company to protect you against the consequences of a status inspection makes sense... but only if you choose the right one.Find out more