Contractors Who Work Under Cis

[daveboy]

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.

Yes this working for one company for more than 3 month period is a real grey area, the way I look at it is if you take your job on a price and provide all your own plant and ladders, transport, ext then you are self-employed even though your not risking your own dosh, I,ve not heard of any new law to inforce this but I do know the CIS scheme is changing in april, theres talk of them taking 25% instead of the 18% they do at present.

[Paul Giles]

Anyone got any documents relating to security exempt on CIS?

[Guest]

Have you tried at the Inland Revenue?

[Guest acornsolutions]

Have you tried at the Inland Revenue?

there is a guide for employers which clearly states that fire and security industries are exempt from CIS. I have been self employed since the 80s. to be fully "self employed" you must also quote for work and have an order raised for the work by the service company that you are working for. you must be responcible to work outside of supervision and be responsible for defects in your work, carrying repairs under warrenty.

there are some customs and excise guidance on their web site.

I am about to go ltd as more of our work is in construction where they do not understand the rules very well.

[kka]

hm customs and excise. Regards CIS

Security systems

7.27 The installation of security systems that are dedicated to that purpose is excluded from the Scheme. Burglar alarms, closed circuit television and public address systems are specifically mentioned in the legislation.

This exclusion would extend to, for example, a computer controlled centralised locking system such as used in hotels with programmable key cards.

The installation must be a 'system' and not simply a building feature that incidentally fulfils a security purpose. Doors equipped with locks provide a measure of security, but they do not represent a 'system'. Similarly, fencing may deter intruders, but it is a traditional feature of buildings and their surrounds and not a security 'system' even if it has security features.

do not know if this is to late to help.

[arfur mo]

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.

write to the tax office explaining the problem, and you should like i did get a letter back from them proving you are exempt from CIS, but i think you might leave out that you are sourcing your work from one company.

to protect yourself from this, any small works for the family or freinds perhaps some of those little private jobs you stuffed into your back pocket, raise an invoice and get it paid into your books. you need to create a paper trail for proof of earnings from indipendent sources so take advice from your accountant. you can invoice to fit a lock to 'uncle daves' house, he pays you then you draw 'cash' and give it back to him, or he flogs you a drill and gives you a receipt for your books. yes you will pay a little tax, but hey this is England not Jersey, and you will keep that nice Mr G. Brown happy at No.11.

hm customs and excise. Regards CIS

Security systems

7.27 The installation of security systems that are dedicated to that purpose is excluded from the Scheme. Burglar alarms, closed circuit television and public address systems are specifically mentioned in the legislation.

This exclusion would extend to, for example, a computer controlled centralised locking system such as used in hotels with programmable key cards.

The installation must be a 'system' and not simply a building feature that incidentally fulfils a security purpose. Doors equipped with locks provide a measure of security, but they do not represent a 'system'. Similarly, fencing may deter intruders, but it is a traditional feature of buildings and their surrounds and not a security 'system' even if it has security features.

do not know if this is to late to help.

the yardstick i was given by the tax office for exclussion is that the work we provide is not part of the essential construction of a building, you do need water, gas, carpentry, bricks, roofs and electrics etc. but the building can be completed and function without security systems - albeit not for long if all the gear gets knicked