Chapter CISR14270
| Published date | 16 April 2016 |
| Record Number | CISR14270 |
| Court | HM Revenue & Customs |
| Issuer | HM Revenue & Customs |
| CISR14600 | Action guide contents |
FA04/S74 (3)(e) excludes the following operations from the Construction Industry Scheme:
- ‘the professional work of architects or surveyors, or of consultants in building, engineering, interior or exterior decoration or the laying-out of landscape’.
Note that this exclusion does not apply to all ‘professionals’ involved in construction projects on a self-employed basis. It applies to surveyors and architects even though their professional disciplines do or may include supervisory or executive function or responsibility.
For other professionals it will only apply to those whose services are consultative, not executive. This means that they stand apart from the execution of construction work or its management.
The work of architects or surveyors, if done within their normal professional discipline, is excluded in all circumstances. Other professionals are ‘consultants’ if they supply technical advice, assessments, plans or designs but are not involved in the day-to-day execution or oversight of a construction project. For example, a consulting engineer, interior decorator or draughtsman providing a design may be regarded as a ‘consultant’. They are not in the chain of command running from contractor to the worker. They provide designs, advice or recommendations that are acted upon by others accountable to the main contractor.
Bear in mind, however, that there are many people operating in the construction industry who are professionally qualified or provide managerial or supervisory services and who are not, or not exclusively, consultants. They include engineers, clerk of works and project managers. Being closely involved in the execution or supervision of a construction project is a normal part of their work. When operating on a self-employed basis they can be ‘subcontractors’ under a contract relating to construction operations because they are ‘answerable to the contractor for the carrying out of the construction operations by others’ (FA04/S58 (b)).
DifficultiesNote that the job title may not always clearly indicate whether the professional is acting within their professional discipline. Where the professional’s work is uncertain, you will need to make enquiries to establish the true nature of the work and any available contracts should make the position clearer.
The following paragraphs deal with some special cases.
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ArchitectsWhen operating within their normal professional...
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