A very disturbing position is currently being discussed by HMRC regarding deemed contractors.

Currently, if a deemed contractor (e.g. a retail business or gym chain) only spends money on the buildings for the purpose of the business, it can apply to HMRC to de-register from CIS and not operate the Scheme going forward.

HMRC now contend that deemed contractor status is questionable, and that all Bodies will become mainstream contractors.

This is in very early days of discussion, and the CBI has made strong approaches to HMRC – it is a case of “watch this space” for developments.

This page was last updated on Wednesday, February 20, 2008.