We’re here to help you make sure the CIS scheme is right for you and how to manage it.
We operate a solid CIS construction solution to our subcontractors. Our subcontractor base operates through this self-employed model free of SDC legislation in their contract.
How your CIS payments are managed
Your hirer will advise us of the hours you worked, and we will provide them with an invoice for your gross pay. Once your gross funds are received, we will deduct our margin and the appropriate Tax of 20% tax, to be paid to HMRC on your behalf. All remaining funds are then paid directly into your bank account and your pay remittance produced.
It is crucial that your CIS registration is complete, and your UTR number is verified. If you do not complete this process, you will be deducted the higher amount of 30% Tax.
As a CIS subcontractor, you are required to have your own public liability insurance, and we will require proof of this. However, all our CIS subcontractors have access to our public liability insurance cover at a small cost per week of £2.75.
How do I register for the CIS scheme?
The CIS scheme is a compliant, robust and reliable contracting option for individuals that want to work on a self-employed basis in the UK construction Industry. To enjoy these benefits, you must register for CIS status with HM Revenue & Customs. This can be done in 4 easy steps.
Register with HMRC
If you are not already registered with HMRC for self-assessment as a self-employed sole trader, you’ll need to register as self- employed or as a business entity.
Obtain a Unique Taxpayer Reference (UTR)
Your UTR is a 10-digit number provided by HMRC. You will need this to register for the CIS scheme.
Complete the CIS Registration Form
You can register for CIS online through the HMRC website or by completing the CIS registration form (CIS 305) and submitting it to HMRC by post.
Verification and Approval
After submitting your registration, HMRC will review your application. Once approved, you will receive confirmation of your CIS registration.
Frequently Asked Questions
How does the self-employed solution work?
As a self-employed subcontractor you will be engaged by us under a contract for services which establishes you as a self- employed individual. You will need to sign and return your contract to us to confirm your agreement and status as a self- employed subcontractor.
What about tax and National Insurance?
We will deduct the appropriate amount of tax from your gross pay. The rate will be set by HMRC when we verify you. Standard rate 20%, higher rate 30%, or gross if applicable. You will be responsible for paying your own NI contributions direct. As a self-employed worker, you are not entitled to holiday pay.
Is there a cost for your service?
Yes. We will agree a weekly margin (fee) with your hirer. This will be charged to you every time we process a payment for you. You do not pay this margin if we do not process a payment to you. You will be paid each week following the week you have worked once we have received confirmation of funds from your hirer.
Do I need to complete a tax return?
Yes. As a self-employed contractor you must still submit a tax return. However, all the information from your engagement with us will be on your remittance slips which should make the process easy and simple.
Can I claim expenses?
Yes. You can claim legitimate business expenses yearly when doing your self-assessment. We recommend you keep all relevant receipts safely. There is no limit on these expenses if all expenses claimed qualify under HMRC rules.
Do I need my own insurance?
Yes. If you don’t have your own insurance policy, we may be able to cover you under our policy, but we will make a small charge per week to cover our costs.