CIS = Construction Industry Scheme, how long on it?
Discussion
Hi all,
A couple of plumbers at this other company are on the CIS.
They deduct 20% from them,
Are the plumbers supposed to also get a monthly tax voucher?
They work on different building sites, first fix, second fix.
How long can they remain in CIS before they should be considered permanent employees.
They all have a works provided van.
I was under the impression, there was a time limit that they could use the CIS ?
A couple of plumbers at this other company are on the CIS.
They deduct 20% from them,
Are the plumbers supposed to also get a monthly tax voucher?
They work on different building sites, first fix, second fix.
How long can they remain in CIS before they should be considered permanent employees.
They all have a works provided van.
I was under the impression, there was a time limit that they could use the CIS ?
There is no time limit for CIS. You can be an employee form day one if that is what you are.
If they have their own van tools etc and quote price work for jobs and do different job ie contractors ie mrs smith and AB plumbing and jg plumb etc
They are likely self employed and CIS
If the plumbing firm give them a van and a tools allowance and continually provides them with work paid for on an hourly basis...
They are most likely employed FROM DAY ONE..
However if that is what they want make sure they are happy as they will get paid 13.8% less before their full tax and NI is taken off! Most CIS bods don't like this as their take home about halves!!
That of course doesn't negate that what they want is irrelevant they are either employed or not!
Have fun.. http://tools.hmrc.gov.uk/esi/screen/ESI/en-GB/summ...
If they have their own van tools etc and quote price work for jobs and do different job ie contractors ie mrs smith and AB plumbing and jg plumb etc
They are likely self employed and CIS
If the plumbing firm give them a van and a tools allowance and continually provides them with work paid for on an hourly basis...
They are most likely employed FROM DAY ONE..
However if that is what they want make sure they are happy as they will get paid 13.8% less before their full tax and NI is taken off! Most CIS bods don't like this as their take home about halves!!
That of course doesn't negate that what they want is irrelevant they are either employed or not!
Have fun.. http://tools.hmrc.gov.uk/esi/screen/ESI/en-GB/summ...
Register1 said:
Hi all,
A couple of plumbers at this other company are on the CIS.
They deduct 20% from them,
Are the plumbers supposed to also get a monthly tax voucher?
They work on different building sites, first fix, second fix.
How long can they remain in CIS before they should be considered permanent employees.
They all have a works provided van.
I was under the impression, there was a time limit that they could use the CIS ?
A couple of plumbers at this other company are on the CIS.
They deduct 20% from them,
Are the plumbers supposed to also get a monthly tax voucher?
They work on different building sites, first fix, second fix.
How long can they remain in CIS before they should be considered permanent employees.
They all have a works provided van.
I was under the impression, there was a time limit that they could use the CIS ?
Register1 said:
Hi all,
A couple of plumbers at this other company are on the CIS.
They deduct 20% from them,
Are the plumbers supposed to also get a monthly tax voucher?
CIS voucher or certificate confirming deductions.A couple of plumbers at this other company are on the CIS.
They deduct 20% from them,
Are the plumbers supposed to also get a monthly tax voucher?
Register1 said:
Hi all,
How long can they remain in CIS before they should be considered permanent employees.
They all have a works provided van.
I was under the impression, there was a time limit that they could use the CIS ?
I'm not sure there is a time limit, but I would have thought the Revenue would ask questions about long term payment by a company to a self employed individual (registered as a company) via CIS, and could ask questions to query the employment status of the individual.How long can they remain in CIS before they should be considered permanent employees.
They all have a works provided van.
I was under the impression, there was a time limit that they could use the CIS ?
Who pays for the running of the van, original purchase/insurance/tax/fuel etc, I'd imagine the Revenue would see the provision of a vehicle as an employee tax benefit in kind, which could confirm the individual as an employee of the company and not S/employed.
Thanks for the reply.
A couple more questions if I may.
Can the subcontractors be only working for the same company, year in and year out, with no other clients?
The company provides them each with a van, some take it home, some don't.
They provide labour only.
I was under the impression, that if they were only working for the same company , then after a period of time, they had to be employed by that company?
I am not sure they get the tax vouchers at each month end, to confirm how much tax had been deducted from them, which they submit to HMRC each year when they do their tax returns.
A couple more questions if I may.
Can the subcontractors be only working for the same company, year in and year out, with no other clients?
The company provides them each with a van, some take it home, some don't.
They provide labour only.
I was under the impression, that if they were only working for the same company , then after a period of time, they had to be employed by that company?
I am not sure they get the tax vouchers at each month end, to confirm how much tax had been deducted from them, which they submit to HMRC each year when they do their tax returns.
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