CONTRACTOR financial services specialist Outsauce is urging self-employed individuals working in the construction sector to seek an expert independent review of their working arrangements.
According to the firm, many self-employed workers are using schemes that they are simply not eligible for, meaning they risk being pursued by HMRC further down the line.
Outsauce CEO Miles Lloyd (pictured) said that a sanity check will quickly identify if individuals are using the best scheme for their circumstances and complying fully with legislation and tax regulations.
“With a large number of construction workers operating on a self-employed basis, many individuals – particularly those who have operated alone for a number of years – are using schemes that they simply aren’t eligible for.
“Given that HMRC is using construction as a target sector for onshore legislation, the risk of contractors being pursued in retrospective HMRC investigations has never been higher so contractors should act now to protect themselves.”
Construction workers are advised that the best way to find out if they are using the optimum model is to get a thorough independent audit that pays particular attention to individual circumstances, compliance and maximising take home pay.
Miles concluded, “I would encourage contractors to ensure the review is conducted by an impartial service provider offering all three HMRC recognised models: self-employed/CIS, employed/umbrella and PSC/Limited Company.
“This way they will know that all options have been carefully considered when a recommendation is made.”