Tax Focus: Subcontractors in the Construction Sector
There has been an increased focus by HMRC on Northern Ireland companies within the Construction Sector, particularly those operating in England. The area receiving particular scrutiny is the role of the subcontractor and their relationship with the company they are employed by.
The latest statistics coming from NISRA on the NI Construction sector show that there continues to be a general upward trend in output since late 2014. Alongside this, the statistics for the wider NI labour market show that there has also been an increase in jobs within this sector (Sources: NISRA Construction output statistics; NISRA Labour Market Report)
As output and growth within the sector continues to increase, so does the importance of ensuring your operations, in particular the employment status of your labour force and associated tax obligations are correct.
HMRC are being proactive in seeking clarification on those claiming self-employed status. A questionnaire is being issued to employers to gather the information required to determine the validity of those declared as self-employed and ensure the associated employer's PAYE is correct.
If you engage with subcontractors and have questions or concerns about information you have been asked to provide relating to employment status and associated tax obligations you should seek professional advice in the first instance.
Our Tax Team are available for a free initial consultation.
Whilst every effort has been made by CavanaghKelly to ensure the accuracy of the information here, it cannot be guaranteed and neither CavanaghKelly nor any related entity shall have liability to any person who relies on the information herein. Information given here is for guidance only. Detailed professional advice should be taken before acting on any information contained herein. If having read the guidance here, you would like to discuss further; a member of our team would be pleased to help you.