If you pay operatives under CIS you could be taking a huge risk. No matter whether you use a payroll company, rely on an agency/umbrella arrangement, or have a contract drawn up by your advisors in all good faith, if your contract fails to stand up to scrutiny, HMRC penalties and fines could put your company out of business.
And with HMRC sending out letters to thousands of construction companies that it has identified as using the same subcontractors on a regular basis the risk to your business could be imminent. HMRC is asking firms to check the employment status of every self-employed subcontractor on your monthly CIS300 return using their new online ‘check employment status for tax’ or ‘CEST’ tool. If the results say they should be employed, HMRC expect you to move them to PAYE before you make the next payment. Get it wrong or fail to comply and the financial implications can be devastating for companies.
When you join the Hudson Contract family the financial risks of failing an HMRC status investigation disappear. It really is that straightforward. And because HMRC can go back six years, we will look back at your records and help you deal with any potential danger. It’s all part of our service and it doesn’t cost you a penny extra.
Check out you potential liability here
No-one can prevent HMRC from inspecting your records and anyone who claims to be able to block status inspections should be given a wide berth. What Hudson Contract does is to eliminate the fear of the inspection and ensure it has no financial consequences for you or your business.
Here’s what HMRC said to one of our clients after a recent inspection:
“A large number of workers are provided through Hudson Contract. The information you have provided confirms the transfer and continuing engagement of these workers is in line with Hudson Contract’s usual practices. There is therefore no employment status for me to consider.”
We have countless examples and client testimonials to prove that with Hudson Contract, you get what you have paid for: a secure self-employment solution that is guaranteed.
No. Hudson Contract guarantees you fully against the financial consequences if our contract should ever fail an HMRC investigation. It has never failed, but if it should, we would pay for the legal team to argue the case and pay the fine if we were to lose.
If you currently use another provider or a contract provided by a third party, be sure to ask them this same question, and get them to confirm the answer in writing.
Run your numbers through our liability calculator and see how big a risk you are taking.Click here