Is Your Workforce Structure Fit For The Construction Industry In 2025

Many construction firms have moved entirely to PAYE over recent years, often based on outdated advice or fear of getting it wrong. But with increased project pressure, tighter labour laws, and more scrutiny from HMRC, directors are now asking:

Is this still the best model for our business?

We speak to firms every week that are struggling with a rigid workforce setup, lacking the flexibility to scale with demand and weighed down by new employment rules.

A growing number are adopting a mixed model, retaining a core PAYE team while strategically engaging CIS subcontractors for flexibility, specialism and seasonal capacity.

The Benefits of a Mixed PAYE & CIS Workforce

• Scalability – Adapt your team size with project cycles
• Efficiency – Reduce admin burden and streamline operations
• Compliance – Manage risk with clear employment status checks
• Preparedness – Navigate changing labour regulations more easily
• Commercial Control – Direct more resources to where they deliver value

“HMRC doesn’t require a fully PAYE workforce—what matters is clarity, documentation, and fair classification.” – James, HMRC Regulation Consultant

But Proceed with Caution

Switching to a mixed model must be done properly. Misclassification and non-compliance can lead to serious HMRC penalties. This is where expert guidance is critical.

At Subby, we support construction firms with:

• Transition planning & compliance structuring
• Employment status assessments
• Seamless CIS payroll & reporting
• HMRC audit protection & ongoing compliance tracking

Thinking of Restructuring Your Workforce?

Don’t guess. Get expert advice.  We can share details of HR experts who have supported firms before and can help you build a strategy that gives you flexibility, protection, and confidence.