CIS is a tax scheme where contractors deduct money (tax) from payments they make to subcontractors and then pass it to HM Revenue and Customs (HMRC). The deductions count as advance payments towards the subcontractor’s tax and National Insurance liabilities. ALL Contractors must register for the scheme. Subcontractors don’t have to register, but deductions are taken from their payments at a higher rate if they are not registered.

 

You can find out more about the types of work that are covered by CIS in HMRC’s CIS340 booklet or via their website: www.hmrc.gov.uk.
 
Note that organisations which do not generally do business in the construction industry, but which have a high annual spend on construction, may well be within the scope of CIS.  

SELF EMPLOYMENT

Self-employment is not a choice, it is defined by the facts pertaining to each individual work structure and engagement. The tax treatment of self-employed subcontractors working in the UK construction industry is governed by the Construction Industry Scheme (“CIS”). Aggregate Partners LLP has a wealth of experience dealing with subcontractors working under CIS.

Self-employment is not for everyone; there are many responsibilities that come with it. It is advisable that you carefully consider your decision to become (or continue to perform services as) a self-employed subcontractor.

As a self-employed worker you benefit from better rates of pay, flexible working arrangements and tax benefits but while enjoying these advantages you equally need to be aware that you obviously do not receive some of the benefits and rights associated with being directly employed under PAYE; such as holiday pay or sickness pay.

That is why self-employment is not for everyone, as such you should consider carefully what is right for you.

Each different assignment or project which you undertake will have its own details, such as the end-user of the services our client, the site location or the rate of payment. However, the terms of your contract for services with Aggregate Partners LLP will remain the same. You can end the contract for services at any time without penalty.

If you have any questions please contact us 0208 901 2914 and one of our support team will be happy to help you, or complete the form to the right and one of our team will be more than happy to call you back and discuss how we might help you stay safely self-employed.

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