Getting help with an HMRC CIS investigation

Expert support for contractors and subcontractors under the Construction Industry Scheme (CIS)

If you’ve received a letter or call from HMRC about a CIS Investigation, you’re right to seek professional advice. HMRC is increasing the level of scrutiny on businesses and workers within the Construction Industry and opening formal investigations at an alarming rate. Our tax disputes team specialises in helping individuals and businesses navigate the complexities of HMRC CIS investigations with confidence and clarity.

What is a CIS investigation?

HMRC regularly investigates those operating within the Construction Industry Scheme (CIS) to ensure compliance with tax rules. These investigations often focus on:

• Whether CIS should have been operated
• The employment status of subcontractors
• Claims for gross-payment status
• Deductions on payments to subcontractors who are not CIS registered
• Invoices involving materials and plant
• Record-keeping and documentation

HMRC investigations can be triggered by routine checks, but in most instances are opened because HMRC has identified ‘risks’ from the filed returns, or third-party information it has received. The most effective mans of resolving HMRC CIS investigations swiftly is to ascertain HMRC’s risks and address them. Our team of experts have extensive experience in managing HMRC CIS enquiries successfully and efficiently.

What to expect during a CIS investigation

An HMRC CIS investigation typically begins with a phone call followed by a formal letter requesting documents and a meeting.

HMRC officers may:

• Visit your business premises
• Interview staff responsible for payroll and CIS
• Review contracts, payment records, and deduction statements
• Challenge the accuracy of your CIS and other tax returns
• Charge financial penalties for any perceived non-compliance

If irregularities are identified, HMRC may issue assessments for unpaid tax, interest, and penalties. In the most serious cases, HMRC may even allege that tax fraud has occurred and pursue a criminal prosecution of those deemed responsible.

Our team of experts will work with you to manage the HMRC investigation effectively. We will defend your position robustly, ensuring that you do not pay any unnecessary tax, interest or penalties.

Common CIS investigation issues

Some of the most common issues raised as part of a CIS investigation include:

• Misclassification of workers as subcontractors
• Incorrect or missing CIS deduction statements
• Failure to verify subcontractors
• Inadequate record-keeping

Get help with an HMRC CIS investigation

Our experienced tax dispute resolution specialists can:

• Respond to HMRC on your behalf
• Defend the accuracy of your CIS Returns
• Make effective disclosures, minimising your exposure to penalties or criminal sanctions
• Negotiate settlements and payment plans
• Protect your business reputation and finances

We understand how stressful an HMRC investigation can be. Our goal is to resolve matters swiftly and favourably, so you can focus on your business. Our dedicated tax disputes team offers a wide range of support, helping clients to manage HMRC investigations. Click here to find out more about our tax dispute services, including our tax investigation service. Alternatively, please contact us today to speak with a member of the team.