HMC CIS Scheme

[AA Teccie (Paul)]

Im a newly started out business been operating 3 years I work with many different people so dont have any permanent staff.

 

 

I have been told my accountant as i have self employed climbers and grounds staff working for me that I need to sign up for the HMC CIS Scheme where basically i have to pay there tax out of their wages.

 

it is a construction industry scheme so does it apply to tree work ?

 

thanks

 

AS I understand it, CIS only applies in the construction industry sector, if you're not working on construction / building sites, e.g. site veg clearance / facilitation tree-works, then it doesn't apply.

 

Your self-employed climbers / grounders should be invoicing you for their time and then they become liable for their own tax & NI. HMRC get concerned if you're using "their" services permanently as they are then employees effectively and hence you're liable for their tax & NI, and soon pension provision, as their employer.

 

Speak to your accountant to clarify exactly why he thinks you should register for CIS.

 

Cheers,

Paul

[kevinjohnsonmbe]

best change him then

 

 

You can't get around registering as a subcontractor, but registering as a contractor? Bend over, no lube.

 

Registering as a contractor is the EASY part. De-registering is the 'king nightmare! There must be 10zillion staff waiting to answer the phone on the 'registering' line and 1, non-English speaking, part time, care in the community, hard of hearing, agency worker on the de-registering line. I wonder if that has anything to do with the revenue they steal for late periodic returns??

 

 

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AS I understand it, CIS only applies in the construction industry sector, if you're not working on construction / building sites, e.g. site veg clearance / facilitation tree-works, then it doesn't apply.

 

Your self-employed climbers / grounders should be invoicing you for their time and then they become liable for their own tax & NI. HMRC get concerned if you're using "their" services permanently as they are then employees effectively and hence you're liable for their tax & NI, and soon pension provision, as their employer.

 

Speak to your accountant to clarify exactly why he thinks you should register for CIS.

 

Cheers,

Paul

 

[LR90]

thanks for all the feed back

 

Have persuaded the accountant that i fall outside the criteria needed for CIS and this document helped.

 

FA04/S74 (2)(f) says that ‘operations which form an integral part of, or are preparatory to, or are for rendering complete (other construction operations including … landscaping’ are within the scope of the Construction Industry Scheme.

 

Where landscaping or similar operations such as tree-felling are carried out as a preparatory measure, or on completion of a construction operation they are subject to CIS.

 

Excluded from CIS

routine landscaping, gardening, forestry and tree surgery not undertaken in the course of a wider project of construction

landscaping open-cast mine areas after mining has ceased (where there are no pit head machinery, buildings or structures).

construction of golf courses (if not associated with the construction of buildings such as club houses).

cleaning up an undeveloped site prior to onward sale of land

 

https://www.gov.uk/hmrc-internal-manuals/construction-industry-scheme-reform/cisr14200

[Ian C]

What you will find is most construction firms will insist on you being cis reg, it's no big issue anyway .

 

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[roseyweb]

It's a good idea to register as gross contractor, they won't let you do it less you've been squeaky clean with tax

[Tim Stobart Tree Surgery]

Just had the same conversation with the accountant, in the wider context of moving from Sole Trader to Ltd company, she seemed to think that I would benefit from the assurances that the CIS scheme offered in terms of liability for my Sub-contractors contributions, but I came on here to see if anyone else used it. As most of my work is either domestic or for large estates, it looks like I'm best steering clear. Thanks for the thread LR90.

ps, nice logo.

[slack ma girdle]

All of my subbies sign a contract which lays out who does what, and importantly that they are liable for there own tax.

 

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