Tax inspectors have been coming down hard on the construction industry and it’s paid off for them!
Extra payments from builders, plumbers and electricians after tax status checks by HM Revenue and Customs saw the figure rise to £131m in the year to March 2014. This is an increase of 7% from the £121m they took the year before.
If you look at the figures from 5 years ago, the yield from tax compliance investigations into the construction sector has nearly doubled.
As well as targeting construction businesses directly, HMRC is now also turning its focus to employment intermediaries who help to process the pay of contractors.
Last month HMRC confirmed that from April 6 2015, employment intermediaries will have to start providing quarterly reports explaining why workers on their payroll are not using PAYE.
HMRC tax probe yields
- 2006-07: £56.0m
- 2007-08: £57.2m
- 2008-09: £65.6m
- 2009-10: £68.9m
- 2010-11: £66.9m
- 2011-12: £78.9m
- 2012-13: £121m
- 2013-14: £131m
Failing to comply with HMRC could result in a big tax bill and a loss of flexibility in employment, which is vital for construction workers.
If you are currently working as a contractor in the construction industry, contact us today and we will be able to advise you on what you need to do as of April 6, 2015.