May 8, 2012

The Shard unites Global Construction workers

What does 2012 bring apart from the historical Olympic Games and the Queen’s Diamond Jubilee – well I have to say iconic buildings and the pooling of multinational skills from great construction companies across the globe. What cannot escape anyone’s attention is the rise of the iconic Shard which has been three years in the making.

What makes this construction and build project so special apart from anything else is that this will be one of the tallest buildings in Europe. Construction workers from across the world have braved dizzy heights to erect a spire of steel and glass making the final building 1,017ft high – standing 230ft higher than the tallest building at Canary Wharf. The spire will sit above offices, hotel rooms and viewing galleries – no doubt with the best views of the capital.

The building was the brainchild of Italian designer, Renzo Piano. Twelve years ago inspirational Renzo gave birth to his vision of constructing an iceberg emerging from the Thames by London Bridge.

We have had the privilege of working with some of the construction companies involved with the Shard as well as the London Olympic 2012 stadium. Helping these construction companies remain compliant within HM Revenue and Custom’s Construction Industry Scheme and VAT has been a full time job and we have successfully helped our construction clients deal head on with the idiosyncrasies of construction accountancy legislation, so keeping the build on track.

Who would have thought that a London based modern glass window of epic proportions could unite international construction workers to such a degree. There is no doubt that the Shard will go down in history along with London 2012 and the Queen’s Jubilee celebrations this year.

Important - we endeavour to keep the information on this Site and the Blog accurate and up-to-date as far as possible. However, please remember the content is intended as a helpful guide only and may be subject to change at any time. Please always seek advice from your accountant or Davis Burton Sellek before acting on any of the information provided.



October 18, 2007

CIS Penalties – Are You Up To Date?

After six months “penalty-free” under the new CIS regime, the penalties will finally kick in on 19th October. Any contractor’s monthly returns (CIS300) due by that date, but not filed by then, will attract a minimum penalty of £100 each.

We say “minimum” because, in some cases, this could be grossly understated. The actual rules for late filing are that each return attracts a £100 penalty:

  1. Per month
  2. Per 50 subcontractors.

Let’s say, for example, that ABC Ltd has 60 subcontractors and the June 2007 return went astray and was subsequently not filed on time. If this return is not filed by 19th October, this will attract a penalty of £800. Don’t believe us? See below:

  • The June 2007 return covers the tax period 6th June to 5th July. This is due for filing by 19th July. Late filing would attract a penalty of £100 but, as there 60 subcontractors (i.e. more than 50) this increases by a further £100.
  • This penalty applies per month that the return is late. Missing the 19th July deadline will incur a penalty of £200 (see above). Missing 19th August, 19th September and 19th October deadlines as well will total £800.

The official statistics are worrying too. Since new CIS came into existence, only a maximum of 59% of all contractors have managed to file their return on time. (Source: HMRC press release) This information suggests that the late/non-filing trend over the summer could have netted HMRC at least £62million!

October also sees the commencement of the compliance review process. This presents a further problem: those contractors who haven’t got up to date yet, but who are registered for gross payment, could lose their gross payment status. Under the review process, contractors will be reviewed annually to ensure that they have complied with their tax obligations throughout the period since 6 April 2007. Failure to comply could make things difficult, both from a commercial and financial perspective.

The rules allow certain breaches to be overlooked, and the following will not compromise gross payment status:

Any, or all of the following in any twelve month period will be ignored:

  • Three late submissions of your CIS monthly return – up to 28 days late.
  • Three late payments of CIS/PAYE deductions – up to 14 days late.
  • One late payment of Self Assessment tax – up to 14 days late.
  • Any employer’s end of year return (form P35) made late.
  • Any late payments of Corporation Tax – up to 28 days late, including where any shortfall in the payment has incurred an interest charge but no penalty.
  • Any Self Assessment return made late.

To read more about retaining your gross payment status, have a look at our news article on the subject.

If you need help with your CIS filing obligations, contact Tanya Matheson at our office today for assistance.

Important - we endeavour to keep the information on this Site and the Blog accurate and up-to-date as far as possible. However, please remember the content is intended as a helpful guide only and may be subject to change at any time. Please always seek advice from your accountant or Davis Burton Sellek before acting on any of the information provided.

Written by Mark Busby @ 4:34 pm


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