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- In a last chance warning to the construction sector, Inland Revenue is telling businesses and sole traders to do the right thing and get on top of their tax obligations. Inland Revenue’s Richard Philp says if people do the right thing, Inland Revenue will help them. If they don’t, Inland Revenue will find them and start follow-up action.
www.ird.govt.nz/media-releases/2024/cut-your-excuses-and-sort-your-tax
People also ask
Will Inland Revenue help construction businesses & sole traders?
Why does HMRC ask for information about a contractor?
Does the construction scheme apply to non-resident contractors & subcontractors?
What happens if a contractor fails to submit a return?
Do contractors have to send HMRC a complete return?
What if I stop trading as a CIS registered contractor?
Sep 21, 2024 · Inland Revenue (IR) is warning construction companies to sort their taxes out or face enforcement action which could lead to prison time.
Apr 8, 2024 · In a last chance warning to the construction sector, Inland Revenue is telling businesses and sole traders to do the right thing and get on top of their tax obligations. Inland Revenue’s Richard Philp says if people do the right thing, Inland Revenue will help them.
Feb 5, 2024 · Guidance and forms for the Construction Industry Scheme. Including businesses based outside the UK, contractors, subcontractors, filing returns, and payments.
Apr 9, 2021 · HMRC introduced further changes on 6 April to tackle Construction Industry Scheme (CIS) abuse. Herminder Sandhu finds out what the rules mean for contractors and sub-contractors. 9th Apr 2021
- Introduction to The Construction Industry Scheme
- The Terms Used Under The Scheme
- How Payments Are Made to Subcontractors
- What HMRC Require from Contractors
- Businesses Not Resident in The UK
This section gives a brief introduction to CIS. The scheme sets out the rules for how payments to subcontractors for construction work must be handled by contractors in the construction industry and certain other businesses. Under the scheme, all payments made from contractors to subcontractors must take account of the subcontractor’s tax status, a...
2.1 Introduction to key terms
Under the scheme, a contractor has to make a deduction in certain situations when making a payment to a subcontractor under a contract that covers construction operations.
2.2 Contractor
Under the scheme, the term ‘contractor’ has a special meaning that is much wider than it normally has in the construction industry. A contractor is a business or other concern that pays subcontractors for construction work. Under the scheme, there are 2 groups of contractors: 1. mainstream contractors 2. deemed contractors
2.3 Businesses and individuals that are not contractors under the scheme
Under the scheme, the following businesses and individuals are not contractors: 1. ordinary householders that are having work done on their own premises, such as new house building, decoration, repairs or an extension 2. businesses which do not include construction operations who have spent less than £3 million on construction work in the previous 12 month period
This section explains: 1. how to make a payment to a subcontractor 2. what you must do before you pay a subcontractor
4.1 What is required from contractors
This section explains what we require from contractors under the scheme. It covers the contractor’s monthly return, payment of any deductions due to us, and explains what might happen if contractors do not apply the scheme properly.
4.2 Monthly returns
Each month, contractors must send HMRC a complete return of all payments made to all subcontractors within the scheme in the preceding tax month. This is regardless of whether the subcontractors were paid: 1. gross 2. net of the standard deduction 3. net of the higher deduction Monthly returns must reach us within 14 days of the end of the tax month they are for.
4.3 How to make a monthly return
There are 2 ways contractors can make their monthly returns: 1. the free HMRC CISonline service 2. commercial CISsoftware Be aware that using these 2 ways at the same time may cause returns to be overwritten.
5.1 Non-resident businesses
The scheme applies to any non-resident: 1. contractor who pays subcontractors for construction work carried out in the UK 2. subcontractor who is being paid for construction work carried out in the UK It does not matter where payment is actually made — if the construction work is carried out in the UK then the scheme applies to that payment. There is no difference between the treatment of UK contractors and subcontractors and non-resident contractors and subcontractors. If you’re applying to...
5.2 Non-resident individuals and partnerships registering for CIS
Non-resident individuals and partnerships who need to register as: 1. contractors should read paragraph 1.12 in this guide 2. subcontractors should read paragraph 1.13 in this guide
Inland Revenue confirms they will be applying pressure on the construction sector to get tax compliant and meet tax obligations, with their audit team on high alert. According to Inland Revenue, tax evasion is particularly prevalent in the construction sector, with significant under-declaration of income, often through cash transactions.
Under the Construction Industry Scheme (CIS), contractors deduct money from a subcontractor’s payments and pass it to HM Revenue and Customs (HMRC).
