01.11.06
Team Construction celebrates five years of success
Team Construction is celebrating five years of highly successful trading as a Payroll Service for contractors and sub-contractors in the Construction industry. Despite the challenges of new legislation, the company anticipates continued healthy growth in the coming years, even in light of the changes anticipated next April.
The company was created following the introduction of the ‘Construction Industry Tax Deduction Scheme’ (CIS) in 1999 to provide both contractors and sub-contractors with an industry compliant payroll service. By working through Team Construction, sub-contractors can legitimately maintain their self employed status thus maximising their take home pay, whilst contractors can avoid the burden of additional and complex administration. Team Construction was one of the first of its kind and has achieved an impressive record in maintaining successful CIS compliance on behalf of its members as well as a clean bill of health with HM Revenue and Customs (HMRC).
CIS and IR35 regulations were introduced by HMRC to determine the rate of tax and NI that sub-contractors should pay. The rate is subject to their relationship with the end user (the contractor) and varies according to whether the sub-contractor was deemed to be employed or self-employed, the latter offering substantial financial advantages to both parties.
Finance Director Debbie Salter said “Construction companies rely heavily on sub- contractors to supplement their workforce and dealing with individual contractors can be an administrative nightmare. Getting it wrong can be costly…where companies can be forced to pay 12.8% in National Insurance. Team Construction is well known within the industry and companies are happy to work with sub-contractors using our services as they are CIS compliant and administration is handled correctly and efficiently”.
With in excess of 1.6 million workers, the UK construction industry is one of the country’s leading employers and, due to the transient nature of many projects, relies heavily on sub-contractors to fulfill requirements. The regulations cause a great deal of confusion not to mention an administrative burden that few individuals or companies have the time, expertise or resources to address. Team Construction offers an attractive solution with a professional, efficient service to handle all necessary paperwork as well as specialist advice and support to help ensure that individuals and companies remain fully compliant. With yet more changes to CIS regulations scheduled for 2007, it is now crucial for contractors and sub-contractors to get their affairs in order.
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