Richard Curtis points out that a recent case is an important reminder to building subcontractors of the importance of compliance with the construction industry scheme requirements.
Many businesses may not like the idea of paying tax and National Insurance contributions (NICs) and find dealing with HMRC onerous, but their operations should generally continue unhindered.
Unfortunately, this is not necessarily the case with those in the construction industry when lapses by the business – or indeed its partners or directors – to comply in a timely and compliant manner can threaten its very existence.
Background
The construction industry scheme (CIS) was introduced in the early 1970s to combat the loss of tax and NICs when building subcontractors failed to declare their earnings. Under the scheme, unless they were registered with HMRC, the contractor
