CIS update – dn’t get caught

HM Revenue & Custms(HMRC) is nw well int their rlling prgramme f cmpliance reviews fr all sub-cntractrs registered t receive payments grss under the new Cnstructin Industry Scheme (CIS) rules. This has prvided an untimely shck fr a numbe

HM Revenue & Custms(HMRC) is nw well int their rlling prgramme f cmpliance reviews fr all sub-cntractrs registered t receive payments grss under the new Cnstructin Industry Scheme (CIS) rules.

This has prvided an untimely shck fr a number f unfrtunate subcntractrs when they receive ntificatin that they are t lse their right t receive payments frm cntractrs withut deductin f tax because f lapses in their cmpliance recrd.

Nick Pllingtn, a partner at Price Bailey Chartered Accuntants and resident expert n the CIS, said: "The lss f grss payment status can have serius cash flw implicatins particularly fr unincrprated businesses such as sle traders and partnerships.

He adds: "It can als cause irreparable damage t a business' reputatin and credibility in the market place. This can ultimately lead t the lss f lucrative cntracts where the main cntractr has strict deadlines and is wary f being let dwn."


You may also want to watch:


The cmpliance test has als caught ut ne r tw new applicants where a pr histry f cmpliance has led t the refusal t grant grss payment status. Fr a fledgling business this decisin culd be critical. In all cases, the subcntractr has the right f appeal and it is wrth cnsidering.

Nick cmments: "A successful appeal will ultimately depend n the strength f the case put frward. Start by analysing the reasns given by HMRC fr their decisin and ensure they are factually crrect. Ensure these cmpliance failures d nt fall within thse minr breaches that HMRC's wn guidelines state will be ignred. And, if all else fails, d yu have a reasnable excuse."

Most Read

Fr further guidance, cntact Nick Pllingtn at Price Bailey Chartered Accuntants n 01353 662892 r email nickp@pricebailey.c.uk.

Become a Supporter

This newspaper has been a central part of community life for many years. Our industry faces testing times, which is why we're asking for your support. Every contribution will help us continue to produce local journalism that makes a measurable difference to our community.

Become a Supporter