Employment Status
On April 6 2007, a new Construction Industry Scheme came into force.
No more vouchers, no more annual returns, no more certificates, more chance to file on-line. So much better than the old scheme.
Except there are one or two differences.
Employment status - whether your subcontractors should be employees - is the big new focus for the big new scheme.
Every time you complete one of the new monthly returns, you have to declare that the employment status of your subcontractors has been considered. Also, that the payments have not been made under contracts of employment.
If you get it wrong, and your subcontractors are held to be employees, that’s a whole lot of extra tax - and penalties of up to £3000 per incorrect return.
Bear in mind, also, that Her Majesty’s Revenue & Customs have doubled the number of status inspectors.
They haven’t done this because they’re short of things to do, it’s because they’ve been told to bring in more tax. This new scheme needs to be paid for, and it’s your industry that’s going to foot the bill.
PROTECT YOURSELF WITH STATUS CHECK
Our unique one-stop tool will help you avoid heavy bills for tax, interest and penalties.
Status Check also contains research material to help you understand the questions you need to be asking, how the system of inspections works, and how to prepare yourself if the taxman decides to take you on.
Status Check has been developed by experts from the construction industry and the accountancy profession, to take a very complicated problem and make it understandable for the people who just want to get on with their work.
Status Check is available on-line NOW, for an annual subscription of only £99.00 plus VAT.
You may already have an accountant to help you with your tax, but there is no guarantee that they know enough about all the complicated issues involving employment status. Subscribe now, and give yourself the back-up you need when the inspector calls.
