CIS contruction workers scheme

[Sarah_W]

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 :-)

[Sarah_W]

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.

[Sarah_W]

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.

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.

Even if I don't setup a Ltd company, if' I'm renovating to sell, I've still got to register under CIS. The benefits of having a Ltd company for me far outweigh those of anything else - sole trader etc.

Edited by Sarah_W on Friday 9th April 14:48