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."
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."
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Fr further guidance, cntact Nick Pllingtn at Price Bailey Chartered Accuntants n 01353 662892 r email email@example.com.