News recently broke that HMRC’s investigations into the construction industry’s payroll practices and taxation have earned them £154.2m in the year up to 31st March 2015, this is up from £131m in the previous year.
The reason? The cash-in-hand nature of the industry and Russian doll-style levels of contracting and sub-contracting. This has lead to what they have referred to as “false self-employment”.
They feel this means individuals finding work through intermediary companies, and the companies themselves, are paying lower National Insurance contributions than they should. They also think many of these contractors should be subject to Pay As You Earn (PAYE), rather than classed as self-employed.
This is the latest chapter in HMRC’s long-running scrutiny of taxation in construction. Various measures have been rolled out to try and get the industry in line, such as intermediary companies now having to provide quarterly reports to show the workers on their payroll subject to PAYE.
Of course, if you’re not sure about your – or your company’s – position regarding tax, get in touch.
The team at CWR Accountants can also provide all the guidance you need, and can even help take care of all your taxation and payroll requirements.