Construction Industry
– How to comply with HMRC’s Tax Deduction Scheme

Can you afford to get it wrong?

HMRC’s ‘Third Edition’ Construction Industry (Tax Deduction) Scheme is well into its third year and whilst no signifi cant changes have been made this time, lots of businesses are still being penalised for failing to submit their monthly returns on time and some Contractors are being fi ned for failing to make the correct deductions from payments to subcontractors. Other continuing problems include failures to register as a contractor and make deductions from self-employed workers who are subcontractors, whether they have registered for the Scheme or not.

Gross paid subcontractors continue to lose their Gross Payment Status because of failures by the business or its proprietors to meet strict compliance rules and contractors who fail to correctly verify new subcontractors or make deductions when a subcontractor loses gross payment status are being penalised too.

This course will provide a detailed review of all these issues and cover the whole process from registration to engaging and paying subcontractors and it will consider the well publicised issue of ‘false self-employment in the Construction Industry and how your business should address the issue, both now and when the expected ‘deemed employment income’ legislation is introduced.

Delegates will receive practical advice with worked case studies on all aspects of the Scheme, from registration to payment of subcontractors and submission of the statutory monthly returns. This is essential training for all staff involved in the operation of the scheme and for those people that have to advise on its operation.

Course Programme:

• What is the Construction Industry Scheme?
• The principle of the tax deduction scheme
• Understanding the roles and responsibilities of Contractors and Subcontractors
• Deemed contractors, the £1m spend and when the rules apply to nonconstruction
industry businesses
• Operating the new Construction Industry Scheme
• Contractor and subcontractor registration
• Making payments to subcontractors
• Tax deductions, materials and other costs
• Subcontractor verifi cation
• Subcontractor payment status
• The new monthly returns and declarations
• The new Penalty Regime
• Coping with the Compliance Test
• The “Scheduled Review – Tax Treatment Qualifi cation Test”
• Handling an HMRC inspection
• Employed or self-employed – getting it right
• A construction industry checklist

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