As a business grows, you might take on permanent employees who you pay using the pay-as-you-earn (PAYE) system. This deducts tax at source, withholding it on income payments to your employees so they don’t have to complete tax returns. It’s your obligation to ensure staff are paid correctly through PAYE, meaning you’ll need to set up a payroll. We can set up and administer a payroll scheme for you, giving you back valuable time to grow your business further.
For people in the construction industry, we can also assist with construction industry scheme (CIS) deductions. This is a complex scheme to understand without prior experience – luckily for you, we know it inside out, and can give you the best advice depending on your circumstances.
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Navigating CIS supporting contractors and subcontractors
If you’re working in construction, the construction industry scheme (CIS) may be applicable to you. Contractors deduct advance payments for tax and national insurance from a subcontractor’s wages, and both parties need to be registered for lower rates to be applicable.
Understanding CIS is complex and there are many factors that come into play. We work with both contractors and subcontractors to ensure both parties understand their obligations and will pay the right amount of tax.
CIS – what’s a contractor or subcontractor?
Subcontractors provide labour services to contractors, but they’re not directly employed by them. Typically, a subcontractor isn’t entitled to holiday or sick pay and bears all the risk of the contract – they should have their own insurance and tools.
CIS services for contractors
- Help you decide if people working for you are legally classed as employees or subcontractors
- Get you set up with the CIS so you can make deductions for your subcontractors
- Calculate deductions and submit information to HMRC, in much the same way as a PAYE return
CIS services for subcontractors
- Get you set up with the CIS
- Complete and submit your self-assessment each tax year
- Calculate if you’re due a rebate