The construction industry has an inherent demand for specialed and flexible labour. As a result the workforce of many contractors include a large amount of subcontracted labour.
In 2007 HMRC introduced the CIS penalties regime. Many contractors are often caught unaware of the significant penalties they can be faced with should they not be compliant.
It is vital to establish the employment status of an individual in order for you to know how to treat their taxation affairs aswell as what rights they are entitled to under UK employment law.
The Construction Industry Scheme (CIS) sets out the rules for how payments to subcontractors for construction work must be handled by contractors in the construction industry.
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