Self employed and CIS

[jim fennessey]

as far as i am aware, if you are cis,and declare you are self employed you must prove to the tax authorities,that you do work for other people wether private commercial or what ever if you do work as a suby for any company say for weeks at a time the tax authorities deem you to be not self employed and you should really be taken on the books by the contractor,the tax authorities now chase contractors abusing cis guys to save on national insurance and employee costs,and you could actually claim holiday pay from contractor depending on the amount of time you have been so called self employed, rant over .

 

[jim fennessey]

i also know one guy who took his boss to a tribunal,the company went bust and he had been doing cis for a year he claimed for holiday pay and some other monies , the full time employees got redundancy paid by government and as far as the tribunal went he was classed as an employee not self employed and got a good few quid. the fact that he had no control over costing invoicing and profit as set out by the revenue he won the case

 

[Jimbob]

Yes you need to be cis registered contractor unless you thinking annual payments will be under £1000, in which case you have to apply for an exception.

I think it's utter crap, it's so inconvenient which shouldn't be the case with subbies, you may aswell employ them. Any other industry doesn't have to do this, just construction. The worst bit is that when I do work for contractors, they take 20%, then when I pay my subbys, I have to pay 20%, which means I have to make at least 20% on the guys or I'm out of pocket, which isn't always possible.

 

[mfgs]

Yes you need to be cis registered contractor unless you thinking annual payments will be under £1000, in which case you have to apply for an exception.

I think it's utter crap, it's so inconvenient which shouldn't be the case with subbies, you may aswell employ them. Any other industry doesn't have to do this, just construction. The worst bit is that when I do work for contractors, they take 20%, then when I pay my subbys, I have to pay 20%, which means I have to make at least 20% on the guys or I'm out of pocket, which isn't always possible.

Its annoying but you will only end up paying the tax at the end of the year anyway. When I work for contractors I don't mind being taxed at source, its all then on account for when April comes around and if you have been paying out wages etc then you may just be due a rebate.

 

[Rickster123]

What ever happened to the little brown envelope of cash on a Friday? Ahh good days.

 

[turnpin]

What ever happened to the little brown envelope of cash on a Friday? Ahh good days.

I remember it well ...sigh...lol regards Turnpin:smile5:

 

[Jimbob]

Its annoying but you will only end up paying the tax at the end of the year anyway. When I work for contractors I don't mind being taxed at source, its all then on account for when April comes around and if you have been paying out wages etc then you may just be due a rebate.

I have no issue with personally being taxed at source. But the issue come for me when Iv got a few subbies. For example, If i get paid 200/per person. I would recieve £160 from a contractor, and £40 would go into my hmrc 'account'. Then if I pay them 200, I have to pay their cis of £40, and pay them £160, therefore being £40 out of pocket until the end of year. So if I have 3 guys, plus myself, I bill for 800, I get payed £640. I then pay them 160 each and 40 each to HMRC. Total payed out £600, leaving me with £40 for the day, until I can claim back the 160 that has been payed to the Hmrc. Obviously I try to make at least 20% on each, but it's not always possible when sometimes the price is tight etc