HMRC claws in record £154m from tax status checks

Aaron Morby 1 year ago
Share

Tough crackdowns by tax inspectors on construction have yielded a 17% jump in revenue from investigations.

HMRC
Tax compliance yields have more than doubled in five years

The yield from tax compliance investigations in construction soared to a record high of £154m, now more than double that of five years ago, according to accountants UHY Hacker Young.

Latest figures comes after the HMRC clamped down on self-employed workers finding work through intermediary companies.

Since April last year employment intermediaries have had to start providing quarterly reports explaining why workers on their pay roll are not using PAYE.

Roy Maugham, tax partner said: “The increased yield from tax investigations and the new rules indicate just how much HMRC are clamping down on tax evasion in the construction industry, and this trend is likely to continue in the future.”

“The construction industry is seen as an easy target by HMRC and has been subjected to increasingly intense investigations in the last few years.”

He warned that it was now more important than ever for companies to keep paperwork to prove that their workers have self-employed status, or a sub-contractor certificate.

“Individuals and companies working in the construction industry must make sure that they have all the relevant paperwork otherwise they risk a high penalty from HMRC.”

Any companies that fail to provide the correct paperwork risk paying up to six years’ worth of PAYE and National Insurance contributions, plus interest and up to 100% of the tax in additional penalties.

 

 

Latest news

Barratt suspends more staff in wake of contracts probe

Three more London division staff reported to be suspended
5 hours ago

Opinion: Time to call off the QS cash vampires

Industry can do without new breed of aggressive quantity surveyors
15 hours ago

Prime Minister unveils £556m Northern Powerhouse boost

Funding boost for Goole intermodal terminal and Blackpool Winter Gardens extension
15 hours ago

22 Bishopsgate to get fastest lifts in Europe

Otis wins contracts for 30km per hour lifts
14 hours ago

B&K wins Altrincham hospital redevelopment

Work to start on South Trafford Health and Wellbeing Centre in March
12 hours ago

Historic builder wins £15m Brighton Royal Pavilion revamp

First phase of the restoration programme involves the Corn Exchange building
14 hours ago

Planning decision on £30m Cumbria campus next month

Work could start next month on Whitehaven school complex
15 hours ago

JS Wright lands record M&E package

Specialist to start work on £5m north London deal in April
15 hours ago

Scaffolding giant Palmers back under British ownership

New owner Colin Butt seals post-Brexit deal with German firm Xervon
4 days ago

Subbies under attack from new breed of aggressive QS

Specialists at war with main contractor quantity surveyors
4 days ago

Asbestos analyst fakes air testing certificates

Court hears how safety checks were not carried out properly on Manchester site
4 days ago

Ealing set for first major office scheme in a decade

Demolition work to start in April paving way for £50m building project
4 days ago

Subcontract rating wins Buckingham £37m waterpark

Coventry City Council scores package contractors in picking winning main contract bid
4 days ago

Crossrail in chaos as M&E work ripped out

100 electricians let go at Paddington as installation work grinds to a halt
5 days ago

Barratt finance boss exits after 15 months

Neil Cooper is leaving by mutual consent with immediate effect
4 days ago

Trade body questions future of CITB

Skills body in the firing line as it gears-up for crucial levy vote
4 days ago

Skills cards for fringe trades to be phased out

230,000 Construction Related Occupation cards to become obsolete
4 days ago

Mott MacDonald names new managing director

Mike Haigh rises from graduate to group MD in 35 years at Motts
4 days ago

Betting Spy: Rampant Spurs a big price at Man City

A Tottenham and Everton double pays a healthy looking 7/1
4 days ago

Pod specialist makes appeal to creditors

Modular contractor Aartoft could be heading for CVA
5 days ago

Plans lodged for 19-storey Coventry student block

Developer Crosslane submits 583-bed student accommodation scheme
5 days ago

Morgan Sindall wins Liverpool Knowledge Quarter work

Liverpool City Council awards two contracts worth £47m on Paddington Village scheme
5 days ago

Van Elle profit dips after Stock Market listing

Fall in specialist piling business profits hits first half performance
5 days ago

Skanska tightens grip on south west highways

Latest £175m Somerset deal follows £245m Devon highways term maintenance agreement
5 days ago

Watkin Jones targets PRS as profits surge

Strong student accommodation pipeline builds platform for growth
6 days ago

Morgan Sindall crowned 2016 contracts champion

Wates, Willmott Dixon and Mace join top 10 firms winning most work last year
6 days ago

Ex-Balfour finance chief to join Mitie after another profit warning

Two-day board meeting at Mitie to review strategy
6 days ago

Lendlease set for landmark £350m Google HQ job

Decision taken on vast King's Cross building contract last Thursday
6 days ago

U+I plans £300m of office refurb work

Developer links up with American firm to target sites in London, Manchester and Dublin
6 days ago

Loxam ups bid for Lavendon to £459m

Belgian and French giants slug it out for control of Leicester-based powered access specialist
6 days ago

Contractor services