One of the UK’s leading tax experts today issued a warning to construction contractors working under the CIS (Construction Industry Scheme) to choose their tax agent wisely. David Redfern, of , issued his warning after seeing a number of prospective new clients who had been badly advised by previous tax agents, landing them in serious trouble with HMRC for inflated and incorrect expense claims. Highlighting his Knowledge is Power campaign, aimed at construction contractors, he urged those on the lookout for a to be aware of those tax agents making unrealistic promises as well as those encouraging contractors to embellish their expense claims.
Speaking at the , Redfern noted that a number of recent prospective new clients had complained to him about previous tax agents who had advised them to exaggerate expense claims, leaving them to fend for themselves once HMRC started to investigate those claims. He stated that “although our campaign is intended to inform construction workers about the areas of allowable expenses that they are entitled to claim so they’re not left out of pocket under CIS rules, this knowledge is also applicable to those who are looking for a new tax agent. Some tax agents are guilty of making wild claims about what can be claimed for but HMRC take a very dim view of those making false expenses claims and it will be the contractor and not the tax agent who ends up in HMRC’s clutches”. He added that a responsible tax agent would never advise a client to make false or inflated expense claims.
Redfern stated that responsible tax agents, such as DSR Tax Claims, will always urge total honesty from clients when it comes to submitting their tax returns to HMRC, adding that “construction contractors should be aware of those tax agents who make claims that seem to be too good to be true – as the saying goes, if it’s too good to be true, it’s likely not true and it will be the contractor who ends up carrying the blame for trying to hoodwink HMRC”. He concluded by stating that a good knowledge of would ensure that CIS contractors aren’t left out of pocket while staying on the right side of HMRC’s rules.