HMRC target CIS & Subbies in hunt for “millions of pounds of taxes that are slipping through the net.”
Experts warn that construction companies will be put under the spotlight as CIS submissions are reviewed, and contractors who engage scaffolders will be under extra scrutiny in this campaign.
Joanna Gander, a senior tax advisory manager at accountancy firm Azets said:
“There is a strong suspicion that millions of pounds of taxes are slipping through the net.
(…) HMRC believes that some subcontractors have been artificially inflating the costs of materials even higher, meaning tax owed on the difference is not being paid.”
In the wake of turbulent economic fluctuations and prices in the industry soaring, HMRC believes that subcontractors could have been artificially inflating prices for profit, with a key focus being on scaffolding suppliers.
Gander also added that the contractors would be liable for any tax that has not been paid, and that HMRC is under “immense pressure” to recover it’s losses.
With this latest campaign looking into construction accounts it is imperative that your company is compliant and able to produce detailed information in order to be protected from any fines or collections.
Many companies are still utilising generic or substandard accounting software, in some cases their entire accounts process could rely on archaic spreadsheets processed manually on every transaction. Manual processing on sub-par systems invites the opportunity for human error, a simple mistake or a loss of documentation that could cost thousands if discovered during an audit or investigation.
Those who use our construction industry specific accounting software will have the reassurance that our software is HMRC approved and that CIS calculations are made automatically in the system based on the tax information provided by the subcontractor. To find out more about how Evolution Mx manages CIS submissions you can watch the video here.
This compliant automation paired with our second-to-none document management feature means that users can assign digital copies of everything from invoices to GRN’s to a contract, keeping a detailed and accessible account of activities that help protect your business from scrutiny.
If you would like to learn more about Evolution Mx and how it ensures HMRC compliance, you can reach out to us for a free demonstration here.
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We have been providing construction software solutions to UK and Irish construction businesses for more than 40 years, and our fully-integrated construction accounting software is used by more than 1,000 leading construction businesses.
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