Going Self-Employed on sites.

[JakeRyanS]

Hello folks,

I'm currently working with an agency but just as PAYE. I'm waiting on my UTR number to register for CIS. Just have a few queries to clear up.
I've been told by the lads on-site that I'm not employed by the agency but by the payroll company I use, so would I need to tell the payroll company or the agency I'm going CIS? Or both?
It's my understanding that the payroll will deal with your tax deductions and all I need to do is pay my national insurance?
Any advice on this subject would be much appreciated.

Cheers.

 

[Deleted member 26818]

Who pays the Employers NI, you or the payroll company?
To be honest, I don't think I've ever heard of anyone being employed by a payroll company.
Anyway, to answer your question, you would have to speak to your agency, and they will then tell the payroll company, that is, if the agency will allow you to go CIS.

 

[Midwest]

Your NI contributions are deducted via your tax for self employed. Have you an accountant?

Whomever is paying you via the CIS scheme, is responsible for deducting tax at source.

 

[Risteard]

To be honest, I don't think I've ever heard of anyone being employed by a payroll company.

I presume he's referring to an umbrella company. If so, it is very common to be an employee of the umbrella company and not the agency for agency work. Needless to say there are tax reasons for this (not all of which the HMRC might consider compliant or lawful).

 

[Leesparkykent]

All to get around IR35 rules....This needs addressing as lads end up taking home a fraction of their hourly rate....The whole setup is disgusting imo and they wonder why cash is king when they make it so hard to earn a living.

 

[Squid]

With an Umbrella company you need to make sure you are uploading all your expenses, mileage/travel costs lunch etc etc.

 

[casperLennon]

Get a limited company.

 

[banny07]

Get a limited company.

what is procedure to set up a ltd company and how much it costs?

 

[Octopus]

what is procedure to set up a ltd company and how much it costs?

Speak to an accountant ....

 

[Deleted member 26818]

what is procedure to set up a ltd company and how much it costs?

You can buy a ready made Ltd Co on the internet.

 

[casperLennon]

£12 to set it up. Google it, really easy to do. You do need a business bank account aswell. Best thing I did