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Services for Construction Companies
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Employment status within the construction industry

The Inland Revenue has embarked upon an exercise to challenge the self-employed status of workers within the construction industry with the aim of re-classifying subcontractors as employees for tax purposes. There are currently many thousands of workers using the Construction Industry Scheme (CIS) putting them outside of the PAYE payroll system which is subject to basic and higher tax rates and NI contributions.

Under new legislation due to apply in April 2006 the onus will be on the hirer to satisfy itself that a subcontractor is genuinely self-employed. Underpaid PAYE tax and national insurance when a worker has incorrectly been paid as self-employed will be due from the hirer, potentially leading to substantial liability. The status of the subcontractor in the current or previous two tax years will determine future status, and so it is important that status is determined sooner rather than later.

It is important to note that the Inland Revenue is not the sole arbiter of employment status, rather this is a legal issue and the Inland Revenue's viewpoint can be contested. Lawspeed specialises in the area of self-employed status and has successfully advised and represented many contractors, providing certainty and saving thousands of pounds of tax in the process.

Having the right contract and arrangements in place is key. Lawspeed provides easy to use contracts offering maximum protection against commercial and employment status risk.

Service offerings to construction companies include:

  • Reviews of relevant contracts and working practices to assess potential risk of exposure to additional tax, NICs, interest and penalties
  • Representations to the Inland Revenue on behalf of those claiming self-employed status
  • A full range of industry-tested commercial trading contracts
  • Internal rules and contracts and external contractor regulations
  • Assistance with contractual disputes & negotiations

Contact us on 01273 236236 to speak to us about your own circumstances or submit an enquiry form and we will contact you.

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Lawspeed is a commercial and legal consultancy specialising in recruitment law, recruitment practice, employment law, employment practice, IR35, contract law and legal services for recruitment agencies, consultancies, contractors, agencies and businesses in the contracting and recruitment industries.recruitment law, recruitment practice, employment law, contract law, contract, contracts, recruitment contracts, recruitment contract, agency contract, agency contracts, consultancy contract, consultancy contracts, employment agency, employment agency contract, employment agency contracts, recruitment, advice, terms and conditions, contract recruitment, temp recruitment, temporary recruitment, recruitment of contractors, limited company contractors, freelancer, legal issues, recruitment consultancy, recruitment consultancies, agencies, agency, employment business, business, start up, start-up, small business, personal service company, freelancers, small company, self employed status, self employed worker, self employment, employment status, status, tax status, legal advice, employment advice, contract advice, terms of business, permanent terms, paye workers, temps, temporary workers, temp status, agency worker, ir35, IR35, ir 35, finance act, substitution, mutuality of obligation, IR35 insurance, business insurance, professional indemnity, contractor support, contractor accountant, IR35 accountant, s660, section 660, composite company, umbrella company, UK contractor, UK accountant, inland revenue, revenue, ir35 legislation, case law, contract negotiation, ir35 tax, ir35 contract review, ir35 solution, IR35 advice, ir35 contract, ir35 proof contract, Interim management, interim manager, interim management advice, commercial review, commercial advice, commercial contract