Hardhats
The construction industry is the only industry where self-employed contractors are ‘taxed’ at source. This is done under the construction industry scheme (CIS). CIS was created in an attempt to stop construction companies from disguising employees as subbies so they could pay less tax. Under the construction industry scheme, the main contractor must deduct CIS […]
Despite what you may have been told, using subcontractors long-term is not a grey area. There is no limit on how long you can work with subbies – nothing in UK law and nothing in HMRC’s regulations. So why on earth does it cause so much confusion? Probably because there is no clear definition of […]
The construction industry can be a minefield for disputes as there are so many things that can go wrong. And if there is a problem with a project, the client is likely to hold the main contractor responsible, regardless of whether it was the fault of a subcontractor. So what happens in this scenario? Would […]
Running a construction business is complicated. You have to manage suppliers, subbies and customers, ensure you stay compliant with ever-changing regulations, and try to make a profit when costs seem to rise almost constantly. As if that wasn’t enough to contend with, HMRC seems intent on making life even harder by continually changing the tax […]
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 subcontractor’s pay and pass this on to HMRC. If your CIS returns are filed late […]
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 register under CIS. Subcontractors do not have to register, but failing to register for CIS has consequences. If you carry out work as a non-registered subcontractor, your CIS deductions will […]
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. But while these things might not be completely preventable, there are steps a main contractor can take to reduce the likelihood […]
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 updates over the years, the purpose is still the same. Under current CIS rules, contractors must make CIS deductions from a subcontractor’s pay and then pass this […]
Under the Working Time Regulations, annual leave and holiday pay are statutory rights for employees or workers (including agency workers) The statutory entitlement is 5.6 weeks – if you work 5 days a week, this works out as 28 days (some companies offer more). Your employer may ask you to take bank holidays as part […]
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 will no doubt undergo more changes in the future). As it stands, you must register for CIS as a contractor if you pay subcontractors for construction work. Under […]
You might have been told you can’t pay subbies by the hour because it makes it look like they are your employees rather than subbies. But this isn’t true. Employment status has nothing to do with how you pay a subcontractor. You can pay subcontractors by the hour, by the day, by the measure, per […]
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 connect with clients. But when it comes to online marketing, too many construction firms and tradespeople unknowingly make themselves a target for HMRC. Maybe you share a photo […]