Hardhats
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 […]
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 bollocks. Even if they vet all the subbies thoroughly, accidents happen, mistakes happen, and insurance claims happen. Why would they want to take on that risk – it’s just extra […]
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 with subbies every now and then. But when you work with your subbies long-term, HMRC starts to get a little more interested. Why? […]
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 HMRC enquiry into the employment status of your subbies. Not only that, but they ensure there’s no ambiguity between you and your subbies, reducing your financial risk if […]