Construction firms being caught out be CIS Tax
July 16, 2008
HMRC has issued in excess of 800,000 fines to construction related companies since the CIS TAX came into being in April last year.
This is a staggering display of ignorance and lack of importance by more than 30,000 construction companies. There were a large amount of courses offered prior to April 2007 educating the construction industry on the CIS scheme, including one run by fightyourcorner.com. The cost and time taken up by non compliance, to say nothing of the penalty of losing “gross payment status” will be extremely damaging to those firms involved.
The scheme was introduced to make sure contractors employed by the construction industry pay the tax they are due. Obviously, a certain amount of additional work is required to comply, but having set up the appropriate system, it is easy to maintain on a monthly basis.
Loss of “gross payment status” can mean that contractors wanting to tender for public sector work will be barred, which will have an affect on potential sales and the competitive nature of the tendering procedure.
The growth in the number of fines is growing rather than decreasing so there is obviously a need for further education within the construction industry.
For assistance with CIS, call 0800 130 0473 or email: mailbox@fightyourcorner.com
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