The HardHats Hub
What happens if you fail to pay CIS deductions?
The construction industry is the only industry in the UK where self-employed subbies are taxed at source. This is done under the construction industry scheme (CIS). Under construction industry scheme rules, the main contractor must make CIS deductions from a...
What happens if you fail to pay CIS deductions?
The construction industry is the only industry in the UK where self-employed subbies are taxed at source. This is done under the construction industry scheme...
What are the consequences of not registering for CIS?
The construction industry scheme (CIS) is a tax deduction scheme put in place by HMRC to tackle tax avoidance in the construction industry. Contractors must...
How to avoid contractual disputes with subcontractors
Disagreements, conflicts, and disputes aren’t uncommon in business, and the construction industry sees its fair share. Even small construction projects can suffer setbacks and unforeseen issues resulting in delays, payment issues or client disputes.
Can a new limited company get gross status?
The Construction Industry Scheme (CIS) was introduced in the UK in the 70s as a way to prevent tax avoidance. Although it has seen lots of revisions and...
Do subcontractors get holiday pay?
Under the Working Time Regulations, annual leave and holiday pay are statutory rights for employees or workers (including agency workers) The statutory...
What do I do if I can’t verify a subcontractor?
The Construction Industry Scheme (CIS) was originally set up in the 1970s to tackle tax dodging. Over the past 50 years, it has undergone various changes (and...
Can you pay subbies by the hour?
The short answer is yes. But we understand why you might think otherwise. It’s because there are so many rumours in the construction industry about how you can and can’t work with subbies and how you can and can’t pay them.
Are you throwing yourself under a bus on social media?
Most of us understand the benefits of social media when it comes to marketing our businesses. It’s a great tool for companies to promote their services and...
Do payroll companies insure your subbies?
You might have heard a rumour that if you contract your subbies through payroll or umbrella companies, they’ll take care of the insurance. It’s utter...
What happens in an HMRC enquiry?
The use of subbies in construction is not unusual – we all know that. And HMRC knows that too, which is why they are unlikely to bother you if you only work...
Using subbies long-term is not a grey area
Despite what you may have been told, using subbies long-term is not a grey area. There is no limit on how long you can work with subbies – nothing in UK law...
Don’t fall into these traps with your subcontractor agreements
HMRC are less likely to try to reclassify your subbies as employees if there is a contract between you that clearly shows the relationship is one of...
What can you do if a subcontractor doesn’t deliver on what was agreed?
There are plenty of reliable, professional subbies out there, but now and then, you come across a dud. And what are you expected to do when a subcontractor...
Are free contract templates any good?
You’ll hear us talking about the importance of contracts a lot. And that’s because they really are the best way to protect your construction business from an...
HardHats: here for the underdog
Would you rather be on the golf course with your mates or fielding questions from HMRC about the employment status of your subbies? Even if you aren’t a golf...
Mutuality of Obligation (MOO): a quick guide for construction firms
There are many myths surrounding the long-term use of subcontractors in the construction industry. Government guidance on what constitutes genuine...
Can subbies drive your vehicles?
There are many myths surrounding the use of subcontractors in the construction industry. One of the common myths we hear is that subcontractors can't drive...
5 ways a HardHats contract protects your business
Many payroll companies would have you believe the only way to use subcontractors long-term is to use a payroll company, but it isn't. You can work with...
Subcontractor management made easy
Nobody starts a construction business because they find admin, paperwork and health and safety policies exciting. But boxes have to be ticked. Information is...
Supervision, direction, and control – what construction firms need to know
The combination of myths, mistruths and misunderstandings surrounding how you can and can’t work with subcontractors is causing unnecessary headaches for...
What needs to be in a subcontractor agreement?
If you’ve been working with your subbies for a while now, it makes sense to get a proper agreement in place. It protects you, it protects your subbies, and it...
Do subcontractors need a contract?
Subcontracting is standard practice in the construction world. There are always fluctuations in work, so it makes sense to have a flexible workforce to help...
Proud Sponsors of the Lighthouse Club Sporting Lunch
Last year, the Lighthouse Sportsman’s Luncheon raised £58,000 for the charity, which is why we’re over the moon to be sponsoring the event for the second year...
Do you really need a contract for services between you and your subbies… (or can you just blag it)?
Claiming to be self-employed doesn't make you self-employed in the eyes of the law. HMRC and the courts can reclassify your subcontractors as employees if...
What is the right to substitution clause (and do you need it)?
If you’ve ever looked into getting a subcontractor contract drawn up, you’ve probably come across the “right to substitution” clause. It’s something we’ve...
How to choose a payroll company
You might think we’re pretty tough on payroll companies, and maybe we are. It’s not that we don’t think there is value in what they do – we just don’t like it...
Why can payroll and umbrella companies pay my subcontractors long-term, but I can’t?
Ever thought it was strange that payroll and umbrella companies say you can’t pay subbies long-term, but then they do exactly that? Odd, isn’t it? What if we...
How Castle Construction successfully defended their subcontractors’ self-employed position
In 2008, Castle Construction was taken to tribunal by HMRC over the employment status of their subcontractors.HMRC believed 314 of their subcontractors should...
How to write a robust and unchallengeable contract
We bang on about subcontractor contracts a lot, but with good reason. If HMRC ever questions the employment status of your subbies, your contract might well...
Does HMRC have it in for the Construction Industry?
Working with your most reliable subcontractors long-term makes sense. You know them, you trust them, and they get the job done…
Reimbursing your subbies – who pays for what?
In an ideal world, your subbies would turn up in their own van, pay for their own fuel, and bring their own tools. All you’d need to pay for is the cost of...
IR35 and construction: what you need to know
Have you ever been told that IR35 means you can’t use subbies long-term? It’s bullshit, of course. Just another scare tactic to convince construction firms...
Is using long-term subcontractors illegal?
Is using long-term subcontractors illegal? No. No. No. No. No, and no again. We’ve said it a thousand times, and no doubt we’ll be banging the drum for a lot...
Is your payroll company leaving you exposed?
In February 2022, an employment tribunal ordered a contractor to pay substantial costs to a ‘self-employed’ subcontractor they worked with via a payroll...
Is HMRC’s CEST tool reliable?
The use of labour-only subcontractors in the construction industry is standard practice. You get a big project, you need extra hands, but you don’t want to...
HardHats v Payroll Company: which is right for you?
If you follow us on social media or have read some of our previous blog posts, you might think we have it in for payroll companies. We don’t. Payroll...
Can your subbies wear your branded uniform?
At HardHats, we love busting the bullshit myths being peddled around the construction industry. And in this article, we’re looking at one of our favourites:...
CIS v PAYE – is it better to employ or subcontract?
According to the FMB, almost 20% of small and medium businesses in the UK are construction companies. Despite this, it’s not an easy industry to navigate....
Working with subcontractors long-term: what you need to know
Understanding the difference between bona-fide and labour-only subbies, navigating the CIS rules, and working out whose insurance covers what is challenging...
How can you work with subbies long-term?
So you’ve found yourself some reliable labour-only subcontractors, and you want to keep working with them going forward. But there’s a problem. HMRC rules...
Understanding CIS: a brief history and the truth behind all the bollocks
Why is the construction industry the only industry in the UK where the self-employed have tax deducted at the source? It sucks. And then there are all these...