Contractors Who Work Under Cis

[daveboy]

I,ve been subbing for 12 months now doing all my work for just 1 company, not been getting gross amount that I invoice for have been working under the construction industry scheme which you pay 18% tax upfront and recieve a voucher which goes to your accountant when he does your tax return. Are there any other subbis on this site who work under the scheme?

[jb-eye]

I,ve been subbing for 12 months now doing all my work for just 1 company, not been getting gross amount that I invoice for have been working under the construction industry scheme which you pay 18% tax upfront and recieve a voucher which goes to your accountant when he does your tax return. Are there any other subbis on this site who work under the scheme?

Daveboy. Intruder and electronic security are exempt fom the CIS scheme.

Jef

[Zak]

You do realise that when subbing, if more than a certain percentage of your income comes from a single employer, then you are supposed to be classed as employed and on PAYE (from that employer).

[Guest]

You do realise that when subbing, if more than a certain percentage of your income comes from a single employer, then you are supposed to be classed as employed and on PAYE (from that employer).

I thought that stupidity only exists in coldshire..

[daveboy]

Great the 2 answers I was looking for, I've known all along that our industry is exempt

but I have been unable to convince the financial director of group which I have been working for thats this is the case, even after getting it in writing from the CIS team at inland revenue. As to working for just 1 company I know the rules but if they keep giving you the work who's going to turn it down, I,m not breaking any rules its them that will be asked why they they are not offered me PAYE. When you've been on the the cards all your working life its a big dession becoming a contractor and when your on a good run of work you get in the comfort zone and don't need to put yourself about, I suppose thats why I've joined this comunity hoping to make some new contacts.

[Truss and France]

Daveboy

I agree with your comments above, I have been a sub-contractor since 1987 and this has always been the case that you not meant to work for one company all the time, no one has taken any notice of this including the Goverment as far as I can see. However I have heard that next year they are trying to enforce some kind of law that you can only work for one company for a three month period, I dont agree with it(I can get round it) and dont see how they will impose it because if you have a six month contract what are you meant to do. I have just been asked to 'price up' a ten month contract so what happens then.

Has anybody else heard of this?

Kev

[ian.cant]

Daveboy

I agree with your comments above, I have been a sub-contractor since 1987 and this has always been the case that you not meant to work for one company all the time, no one has taken any notice of this including the Goverment as far as I can see. However I have heard that next year they are trying to enforce some kind of law that you can only work for one company for a three month period, I dont agree with it(I can get round it) and dont see how they will impose it because if you have a six month contract what are you meant to do. I have just been asked to 'price up' a ten month contract so what happens then.

Has anybody else heard of this?

Kev

Nope.

If you have a a days break or a long weekend or a holiday i suppose that covers it?

[Guest IM_Alarms]

Nope.

If you have a a days break or a long weekend or a holiday i suppose that covers it?

As long as you have the option to substitute your labour for another person of your choosing then you are still classed as self-employed, whether the contract is a day or a year. It's all a matter of approach. The Inland Revinue are quite rightly trying to stop people from getting the benefits of self-employment without the risks( as they are there as a kind of bonus for the extra effort involved). Therefore if you are working solely for one person and are not allowed to go off and do another job elsewhere whilst sending someone in your place then that is a good sign that the company employing you are viewing you as an employee. There are many other examples of things the revenue look for like, timesheets, hourly rates and provision of tools/plant.

[C.S TEK.]

I went from self employed to LTD as I was mainly subbying to one company. Have you thought about going LTD.

Chris

[Rich]

Check out IR35, that I think would be more relevent to you in your situation.

This questionnaire acts as a rough guide to your employment status under the new IR35 guidelines. Answer the questions as they relate to your current assignment, as each contract is considered on a case-by-case basis by the Inland Revenue.

1. Can you choose whether you do the work yourself or hire someone else to do it ?

2. Do you work set hours, or a given number of hours per week or month ?

3. Do you have the final say in how the business is run ?

4. Can somebody else tell you at any time what to do or when and how to do it ?

5. Do you risk your own money in the business ?

6. Do you provide the main items of equipment that you need to do your job ?

7. Are you paid by the hour, week, or month ? Can you get overtime pay ?

8. Are you responsible for meeting the losses as well as taking the profits ?

9. Do you have to correct unsatisfactory work in your own time and at your own expense ?

10. Can the contract only be terminated by a breach in the contract terms ?

11. Are you paid an agreed sum for completing a task or project ?

12. Do you risk your own money by quoting a fixed price for completion of a task in a certain time frame ?

Are you a skilled worker, working for a number of clients and operating in a business like way ?

Do you work at the clients premises or at a place of their choosing ?

If you answered 'Yes' to questions 2, 4, 7 & 14 then you are likely to be classified as employed under the IR35 guidelines.

If you answered 'Yes' to questions 1, 3, 5, 6, 8, 9, 10, 11, 12 & 13 then you may be considered to be self-employed under the IR35 guidelines.

However, you should always get professional advice regarding your employment status and be aware that your status may change if you start a new contract.