Commentary

A6.954 Construction industry

Administration and compliance

A6.954 Construction industry

A6.954 Construction industry

HMRC has long regarded the construction industry as a danger area, and a fertile area for non compliance. Despite numerous changes to certification and tax deduction documentation, it still remains a high risk area and when carrying out a review, HMRC will pay particular attention to:

  1.  

    •     failure to recognise a construction operation to which the Construction Industry Scheme applies. It is sometimes difficult to decide if CIS applies; HMRC's booklet CIS 340 provides further guidance

  2.  

    •     any incorrect deduction for materials. CIS tax is calculated after deducting the cost of materials. Those costs must be genuine

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