CIS contruction workers scheme
Discussion
Sarah_W said:
Just in the process of setting this up for a renovation company I run. In practise, do most tradesmen tend to be registered under it, or is doing subcontract work under this scheme a hassle they tend to avoid?
Experiences please :-)
Not sure you've put this in the best forum ;-)Experiences please :-)
carsarecool said:
Most subbies working in the commercial market operate within the CIS Scheme.
You shouldn't pay anyone, or any company until you have their Unique Tax Reference and have verified them with the Inland Revenue for their tax status.
How about the sort of tradesmen who typically do private work for homeowners? I do such small scale development (renovaitng flats etc) that I wont be using people who typically work in the commercial sector.You shouldn't pay anyone, or any company until you have their Unique Tax Reference and have verified them with the Inland Revenue for their tax status.
They should still be CIS registered. Otherwise the tax goes haywire. Only time they won't be is if they are a limited company. Best to get UTR and check with tax office.
This might help: http://www.hmrc.gov.uk/CIS/con-reg-obs.htm
This might help: http://www.hmrc.gov.uk/CIS/con-reg-obs.htm
Sarah_W said:
carsarecool said:
Most subbies working in the commercial market operate within the CIS Scheme.
You shouldn't pay anyone, or any company until you have their Unique Tax Reference and have verified them with the Inland Revenue for their tax status.
How about the sort of tradesmen who typically do private work for homeowners? I do such small scale development (renovaitng flats etc) that I wont be using people who typically work in the commercial sector.You shouldn't pay anyone, or any company until you have their Unique Tax Reference and have verified them with the Inland Revenue for their tax status.
if your using small tradesmen, and only on a small scale, does it really matter.
Althugh, if youve set it up, presumeably your going to use it.
Let us know how you find finding costs as competitive as using normal tradesmen.
FlashmanChop said:
Sarah_W said:
carsarecool said:
Most subbies working in the commercial market operate within the CIS Scheme.
You shouldn't pay anyone, or any company until you have their Unique Tax Reference and have verified them with the Inland Revenue for their tax status.
How about the sort of tradesmen who typically do private work for homeowners? I do such small scale development (renovaitng flats etc) that I wont be using people who typically work in the commercial sector.You shouldn't pay anyone, or any company until you have their Unique Tax Reference and have verified them with the Inland Revenue for their tax status.
if your using small tradesmen, and only on a small scale, does it really matter.
Althugh, if youve set it up, presumeably your going to use it.
Let us know how you find finding costs as competitive as using normal tradesmen.
The Inland Revenue will (not could) come after you for tax you should have stopped them.
As mentioned, best to check first.
carsarecool said:
You still need to be registered and have a UTR if you operate as a limited company,as we do.
Most small one/two man bands working wholly in the domestic market don't bother with it or operate on cash payment in my experience.
Most small one/two man bands working wholly in the domestic market don't bother with it or operate on cash payment in my experience.
yep.OP, if you've set up a company you must check they're registered or deduct 20%.
Hope you know what your letting yourself in for, the paperwork alone is a PITA.
Spudler said:
carsarecool said:
You still need to be registered and have a UTR if you operate as a limited company,as we do.
Most small one/two man bands working wholly in the domestic market don't bother with it or operate on cash payment in my experience.
Most small one/two man bands working wholly in the domestic market don't bother with it or operate on cash payment in my experience.
yep.OP, if you've set up a company you must check they're registered or deduct 20%.
Hope you know what your letting yourself in for, the paperwork alone is a PITA.
Edited by Sarah_W on Friday 9th April 14:48
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