CIS
CIS - The 4Pay Way
We want you to be sure that you understand how our CIS Scheme is operated before you decide to join us. Working with us means you are choosing to be self-employed and as such your status is different compared to that of a PAYE employee directly employed for a company. We hope the following frequently asked questions & answer will satisfy any queries you may have but in the event that you still have other questions please do not hesitate to contact us . We will call you back to save your bill and answer any questions you may have.
I work in construction and want to apply to become self employed. How do I go about this?
The construction industry offers its own specific self employed scheme called CIS or Construction Industry Scheme. All you do is apply to your local HM Revenue & Customs Tax Office for your Unique Tax Reference no.(UTR) and then call the New CIS Helpline on 0845 3667899 to register.
Tax & National Insurance? How do I pay these?
From April 2007 the CIS Scheme changed, all sub contractors will now have to be verified with HM Revenue & Customs and depending on the outcome of verification process will determine at what rate we will deduct Income Tax from you before remitting this to HMRC.
Class 2 national Insurance should be paid weekly by you directly to HMRC. Please call them directly on 0845 915 4655 to arrange for this.
Holiday Pay, Do I get it?
10.17% of the total payment made to you for services represents payment of your holiday pay and this is included in each weekly payment for services. It is noted that this right to holiday pay is a contractual right and not a statutory right under the working time regulations.
Can I claim expenses?
Yes you can. You will have to complete an annual self assessment tax return and can claim your business expenses then. Remember to keep your expense receipts for up to six years in the event that the revenue wish to enquire into your tax return.
Self Assesment - Whats it all about?
You are required by law to file an Income tax return with HMRC for any income received from self employment on or before the 31st January after the end of the relevant tax year. Currently tax years run from 6th April to 5th April. In this return you must declare all income as well as
claiming any expenses that you have incurred during the same tax year. The total amount of tax due is then calculated on your personal taxable profit. They then offset the on account monthly tax payments that have been made by you or in our case on your behalf and you may end up with a tax refund if your tax deducted is more than the amount due to the Inland Revenue.
You can file the return yourself or alternatively use our preferred accounting partners HJS Accountants on 02380 234222 ....... To do it for you.
For additional info on CIS please call HMRC on 0845 300 0581 or visit their website:
www.hmrc.gov.uk/cis