HMRC - Construction Industry Scheme deductions

If you are a subcontractor within the Construction Industry, you can apply for gross payment status. This means that contractors will pay you in full, without deductions. You’ll then have to pay all your tax and National Insurance at the end of the tax year. 

To qualify, your business will have to be within the UK’s construction industry, run through a bank account and have a turnover of at least £30,000 if you’re a sole trader, £30,000 for each partner in a partnership (or £100,000 for the whole partnership), £30,000 for each director of a company (or £100,000 for the whole company). If your company is controlled by 5 people or fewer, you must have an annual turnover of £30,000 for each of them. 

If you want to apply for or manage your CIS deductions, you can contact HMRC through Resolver.

• You should always try and resolve any problems with HMRC by talking with the person who has been dealing with you first.
• If this is impossible or has not resolved your issue, you should use Resolver to contact them.
• HMRC operates a tiered complaints system. Complaints will go through two tiers of service.
• If you are still unhappy, you can ask your MP to escalate your complaint to the Parliamentary and Health Ombudsman.

If you believe HMRC has not correctly followed procedure, it's always worthwhile to consider contacting them via Resolver. HMRC may offer compensation for any distress, delay, damage caused, or costs incurred by HMRC (such as the cost of having to hire an accountant).

It's worth knowing that HMRC have the right to take enforcement action to reclaim any debts (under certain conditions).

You should be aware, however, that HMRC field agents have no right of seizure. They might take note of the things you have (your assets), but they can't take any on the spot.

HMRC can level penalties for late payment. It's always worth contacting HMRC if you believe you might have been incorrectly penalised (or if serious circumstances stopped you from paying on time). HMRC will often consider any reasons you might have for late payment.

You should try and correct any mistakes with your tax as soon as possible.

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