About Us: Howard
Howard Royse ACA
Chartered Accountant and
ICAEW Representative on CIRIP
For the last three years, I have been the construction industry representative for the Institute of Chartered Accountants in England and Wales. This involves me in monthly discussions with the Inland Revenue (now HMRC), on an advisory panel with other representatives from the CBI, Construction Confederation, FSB, FMB and other professional and industry bodies.
In these last three years, I have seen the new Construction Industry Scheme (CIS) develop - initially to improve the method of monitoring the industry and replace the voucher system, then to improve the level of tax compliance of the industry, but more recently the issue of employment status has grown to greater prominence.
HMRC have developed the Employment Status Indicator, for businesses to use as guidance for the tax treatment of their subcontractors. In its current state, it is better than some of the earlier versions that my panel colleagues and I were asked to comment on, but I still have some criticisms, namely;
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the outcomes seem to have a small but significant bias towards employment;
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the Indicator is not easy to use;
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there are no version numbers, so the Indicator can be changed invisibly to give
different results.
Also, with regard to the case law, HMRC’s commentary on some of the court cases that have a bearing on employment status seems biased to their preferred interpretation. So, it seemed sensible to offer an alternative to the whole industry, that was easier to use, at a price that small businesses could afford.
I have my own accountancy practice, including many clients from the construction industry from the single subcontractor to own-project contractors. They all help to keep me informed what is actually happening out on the site, and it is my aim to use that information to the benefit of the industry.
Carolyn, Mike and I have differing skills and experience, but we work extremely well as a team and we are confident that we have produced something that is usable by everyone. Status Check was never intended to satisfy every professional and academic with an opinion, or to be the last word on the subject, but as something affordable that helps people to cope with a very complex area.
