Latest Construction

  For many years now, businesses, particularly builders, have provided their staff with twin cab pick-ups, instead of cars, to take advantage of the more generous tax regime. Such vehicles have previously been taxed as a van, resulting in more favourable capital allowances, VAT, NIC and benefit in kind treatments. The distinction between a car…

Although the amount of tax ultimately paid on profits will be the same if you obtain CIS gross payment status, improvements in cashflow and reductions in the cost of credit, such as overdraft interest, should easily make the application process worthwhile. To be eligible to gain CIS gross payment status and receive payments from contractors…

Construction Projects: Use of cloud accounting helps with BIM. Are you part of a construction project team? There is increasing publicity being given to the integration of Building Information Modelling (BIM) into construction projects. Since 4 April 2016, any firm wanting to be considered for public sector construction work has to be BIM level 2…

Builders: Problems obtaining CIS refunds from HMRC ? Over recent years many limited company subcontractors working in the construction industry have experienced problems and delays in obtaining their CIS refunds from HMRC, due records not matching, i.e. the contractor who made the deduction has not correctly reported this on their monthly CIS returns. Subcontractors who…

CIS: Why are our subcontractors now showing as unverified? This is a phrase undoubtedly being heard in the offices of construction industry firms nationwide as HMRC appear to be having some CIS online service verification issues.  Contractors looking to complete their latest monthly return may be logging on to their online services to find that…

CIS: Big administration changes. With effect from 6 April 2016, a lot has changed within the CIS processing sector: The abolishment of the paper return, Amendment to the nil return obligation, Changes to the Compliance and Turnover tests when applying for Gross status. Paper seems to be a thing of the past and so HMRC…

Business Credit Rating: Poor rating hurting your business? If there is one positive that has come out of the UK’s double-dip recession, then it is reminding businesses of how important their credit rating is. In many sectors, both suppliers and customers have now re-engineered their processes to routinely look at a company’s credit ratings. Within the UK,…

Green Finance: Santander now lending on energy efficient CapEx. Santander, through their partners Macquarie Equipment Finance, have recently announced that they will lend on the following energy efficient asset purchases: Batteries/storage Biomass Boilers Boilers (condensing/gas) Building Management Systems CHP systems Energy Efficient Lighting (LED) Gas turbines Heating/ventilation air conditioning systems Metering Power factor correction Roof ventilation Solar…

Removal of CIS Gross Payment Status: Financial consequences no longer relevant. A recent HMRC appeal (CRC v J P Whitter) heard in the Upper Tribunal overturned a decision made by the First-tier Tribunal to reinstate gross CIS payment status on the grounds of it having a ‘significant detrimental effect on the business’. The Upper Tribunal…

CIS: Welcome relaxation in red tape. The government has announced that it will implement a package of improvements to the CIS. The stated aim of the changes is to reduce the administrative and related cost burden on construction businesses. The measures should result in more subcontracting businesses being able to achieve and maintain gross payment…