Self employed and CIS

[AH&B]

I am a self employed plumber, if I want to hire a self emplyee labourer would I need to use CIS?

or could he invoice me and I pay him and he sort his accounts at end of year?

 

[mfgs]

You need to stop the tax at source and do a monthly CIS return.

 

[AWheating]

ideally pay him/her via CIS if its regular work.

 

[AH&B]

Why cannot he invoice me and I pay him?

What i understood CSI to be full installations in new builds? Any alteration or additions is exempt.

 

[mfgs]

Why cannot he invoice me and I pay him?

What i understood CSI to be full installations in new builds? Any alteration or additions is exempt.

My understanding of it is that as you work in the construction industry and you will be the contractor, he will then be a subcontractor and that will qualify under the CIS scheme to make you have to deduct tax at source.

 

[AH&B]

Ok, thanks.

Does it make a difference I don't work on site, I work for private customer homes.

 

[mfgs]

Ok, thanks.

Does it make a difference I don't work on site, I work for private customer homes.

No, that doesn't make a difference. You still carry out work covered under the CIS scheme and are hiring in a subcontractor. That is what my understanding is anyway, I could be proved wrong.

 

[AH&B]

Ok thanks for help.

 

[Chalked]

Don't be tempted to pay him any other way than CIS. Somone I know has been investigated and has had a hefty bill for the subcontractors national insurance.

 

[lame plumber]

hmrc used to go after the employer for unpaid tax/nics rather than the employees, being that the employer had records to offset the employee costs against tax, so you actually made the taxmans life easier!!!!!!!!!!!