All business, from a self-employed individual to a blue-chip publicly quoted company, that is engaged in construction operations must register with HMRC.
HM Revenue and Customs (HMRC) has put rigorous special tax compliance regulations in place for the construction industry where subcontractors are used on projects. Failure to follow these rules could lead to severe and avoidable tax penalties and the loss of “qualifying status”. In the worst cases, contracts could be lost as a result of action by HMRC.
It is also worth noting that increasingly aggressive anti-avoidance legislation has been introduced in recent years, some of which is aimed specifically at UK property owners.