Late invoices, deposits, stage payments, CIS and the VAT reverse charge: getting the money into the bank.
Construction is the worst sector in the country for late payment, and the rules split in two depending on who owes you. A homeowner and a main contractor are different problems, and the interest you are allowed to charge is different too.
Deposits and stage payments before the work starts, chasing an overdue invoice once it has, the letter you send before taking it further, and the small claims route if it comes to that. Plus CIS deductions and the VAT reverse charge, which catch out most firms the first time.
Paying subcontractors puts the CIS deduction, return and paper trail on your business. That applies to your subcontractor payments even on a job in someone's kitchen, and even when another contractor is making deductions from your own invoices.
Construction payments or CIS credits linked to a connected party's deliberate non-compliance can expose your business to a penalty if you knew or should have known of the link and HMRC has issued the relevant determination. Company officers can also be personally liable.
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