We recently launched a new FREE CIS Healthcheck service to help recruitment businesses use the scheme safely.

The Crest Plus CIS Healthcheck aims to identify risks you may be facing so you can tighten up systems and procedures to ensure your agency can place CIS workers with complete peace of mind.

Common Pitfalls

Having specialised in CIS payments for 20+ years, we know the common pitfalls and issues that would prompt an HMRC investigation.

There are four common pitfalls you should be aware of – lack of accountability. being careful not to make assumptions with hourly rates and the headaches that can be caused by improper working practices. Another common pitfall, however, is failing to interrogate occupations.

Some occupations within the construction industry present more risk than others, the most common one being ‘labourer’.

Tests for genuine self-employment revolve around the need for ‘supervision, direction and control’ (SDC) of a worker. If any aspect of SDC is present, a worker is unlikely to be classified as self-employed. One of the basic tests is whether a worker is told what task needs to be done, and how, with little autonomy over their approach. As a leader in CIS compliance, Crest Plus performs and documents a thorough assessment process aimed at ensuring we have the required evidence for HMRC should it be required.

Other aspects of self-employment tests focus on Mutuality of Obligation and the right to substitution. If a worker does not have the autonomy to substitute a suitably qualified person for themselves in a role then they are unlikely to pass the self-employment criteria.

What to do

It’s important to ensure your consultants understand what types of occupations are or are not likely to be suitable for CIS payments. This will help avoid any issues and time-wasting whereby workers expect to be able to use CIS but who then go on to fail the necessary criteria.

FREE CIS Healthcheck

Our new CIS Healthcheck service will give you and your team the assurance you need to know you are operating in compliance with HMRC’s rules.

The Healthcheck is a detailed audit and results in a report and recommendations on areas of strength and weakness, enabling the organisation to address any areas of concern.

Furthermore, it enables you to demonstrate due diligence in managing supply chains which is a critical component required by HMRC.

There is no charge for the healthcheck service and you can opt for it to be undertaken by a Crest Plus CIS expert or by our independent Chartered Accountant who is also a specialist in CIS.

Book a CIS Healthcheck or get in touch with our expert team on 01244 684700 who will be pleased to answer your questions and help you use CIS compliantly with peace of mind.