Many of our clients have seen the benefits of using agency labour instead of employing direct. Not only does it cut down on their paper work it also ensures they do not contravene the new tax laws (see below) and with 30 days payment terms can help with cash flow.
New CIS laws were brought in to increase the tax taken from the construction industry.
|
FACTS The new monthly return can Easily identify contractors who. Work for one contractor. Are paid regularly. Are paid few materials.
|
CONSEQUENCES If you are found to have made The wrong assessment with regard to "employment status" you can be liable for. Back taxes (for up to 6 years). Penalties (£3,000. per "offense" and 100% of any tax underpaid. Loss of Gross Payment Status. |
|
FACTS £70 Million has been raised by HMRC in penalties in just 9 months. 33% of companies expect to lose there Gross Payment Status. |