CIS payments

[londonfire]

I am currently exploring using CIS payment as a means of being paid whilst subbing work.

I only do electrical work part-time so would like to do it in the most cost effective manor.

A friend has told me that he had 30% deducted due to being employed PAYE elsewhere.

Does anybody get paid or pay there subbies by CIS and could shed some light on the advantages and disadvantages of doing it?

Or could I just invoice for the hours or have a zero hrs contract etc?

Thanks in advance for any replies.

 

[Risteard]

I am currently exploring using CIS payment as a means of being paid whilst subbing work.

I only do electrical work part-time so would like to do it in the most cost effective manor.

A friend has told me that he had 30% deducted due to being employed PAYE elsewhere.

Does anybody get paid or pay there subbies by CIS and could shed some light on the advantages and disadvantages of doing it?

Or could I just invoice for the hours or have a zero hrs contract etc?

Thanks in advance for any replies.

I regularly do CIS work. If you are a Self-Employed Subcontractor working within defined Construction work then the CIS scheme is mandatory. You can't choose whether to be paid this way.

 

[Octopus]

If its "maintenance" work it doesn't come under the remit of CIS!

 

[Risteard]

If its "maintenance" work it doesn't come under the remit of CIS!

Indeed. That's why I stated defined Construction work, i.e. as defined by HMRC.

 

[snowhead]

You'll probably fail on the Turnover test if you are after Gross payments.

If you do exceed the £30000 turnover, you'll be well into 40% tax anyway with your PAYE income.

Gross payments


Subcontractors are eligible to receive their payments gross (without tax deduction) if they fulfil three qualifying tests:

• Business test
  Construction work is carried out in the UK, and run largely through a bank account.
• Turnover test
  For individuals and sole traders, annual turnover is £30,000 or more (excluding VAT and cost of materials). The figure is higher for partnerships and most companies.
• Compliance test
  There are no outstanding tax returns or payments due. HMRC will ignore minor compliance failures, such as a late filed Self Assessment returns or late payment, but if there is more than one offence HMRC may revoke gross payment status.
  

 

[polo1]

There is a facility to pay what's due yourself rather than have the main contractor make deductions on payments to you - either way, you pay.

 

[londonfire]

http://www.hmrc.gov.uk/manuals/cisrmanual/cisr14090.htm

So from reading this I see a re-wire as on going maintenance of a system?

 

[londonfire]

Hang on complete re-wire counts as an installation but not a board change or a new circuit?

Looks like every job from now on might be maintenance!