CIS: When are contractual arrangements caught?
Whether certain contractual arrangements are caught for construction industry scheme (CIS) purposes can lead to confusion and potentially non-compliance. Anil Patel answers your questions on this point.
Replies (4)
Please login or register to join the discussion.
Isn't it time that CIS was put out to grass?
The solution to preventing (or at least reducing) a lack of tax collection in one area should not be to simply move the collection burden onto others - even if that has become HMRC's modus operandi over the years.
All it does is at best to provide a layer of extra admin, which is actively used by some to avoid paying their liabilities - and, as per the article, trips up the law-abiding but unwary along the way.
Where HMRC have tried to create a scenario whereby money is paid to them quicker e.g. IR35, CIS and changing employment status, they have made a huge scaffold pole for their own backs. If they left all alone they would find the coffers filling. I have felt for many years that HMRC should leave the admin to us and just get on with investigation and collection. I was hoping that agent strategy would lead to that but hey ho MTD will sort out all the problems.
Agree CIS has had its day.
We can only properly fix the problem when cash is out of the picture and all payments are traceable through bank accounts.
It will be a great step towards stopping corruption and fraud when cash is no longer viable.
You certainly are talking out of your windybottom. Don't you think people will find a different way of payment other than cash? We've got bitcoin and barter. The biggest fraud are to do with banks and nothing to do with cash. Cash always eventually gets into the real economy where fraud almost certainly doesn't.