Here are some frequently asked questions regarding CIS
Q. What is CIS (Construction Industry Tax Deduction Scheme)?
A. CIS is a scheme developed by HM Revenue & Customs for the construction industry. Contractors and sub-contractors must be registered with the HMRC and hold a UTR (Unique Tax Reference) number. (You can get a detailed booklet from the HMRC called CIS340, Guide to the Construction Industry Scheme).
Q. How do you notify me when I get paid?
A. If you are registered for our online portal you can access your payment information at any time and view what payments have been processed for you. Otherwise you will receive a remittance slip on email or by post with a full breakdown of your earnings, you will also receive a free text message confirming your payment. This informs you when the funds should clear in your account. Texts are only available where we have a record of your mobile number.
Please note: payments will only commence once we have received a complete registration form from you along with all relevant supporting documentation, including certified photographic ID.
Q. Who is responsible for paying tax and NI?
A. If you are registered with a UTR number 20% tax will be deducted from your income by us at source. You will be responsible for your weekly Class 2 NI payments and Class 4 at the end of the financial year. Please see www.hmrc.gov.uk/cis
Q. What else do you provide?
A. We offer members free Employers and Public Liability as part of our package. It does not include Professional Indemnity which is rarely required. Personal Accident cover is provided, offered by our brokers at a small weekly charge of £2.50, only for weeks worked.
Q. Can you assist me with further insurances like Professional Indemnity?
A. PI cover is available from our brokers at a preferred rate on £11 per week.
Q. What is the commitment for using your services?
A. Some people use us for a few weeks, some for years. We do not tie anyone down to a fixed contract, we can simply be used as and when payment is required. The service we provide is fully portable, you can take us from contract to contract to handle your payments.
Q. What notice period do I have to give if I want to leave?
A. There is no notice period, just let us know you no longer wish us to receive and process payments on your behalf.