CIS, PAYE or employer!

BetterTAX

BetterTAX

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OK, so over on the "this forum's dying" thread, I said I'd start a new thread.

Obviously, this subject is close to my heart :love: and as a forum sponsor, I feel I'm allowed to ask :toung:- it may interest to some of you anyway.

It's not meant to start an avalanche of PM's to anyone either but who here is-

CIS?

PAYE?

Employer - do you employ CIS or PAYE?

Do you prefer to do your own accounts/ tax returns?

:eek:
 
i employ cis, bettertax. i used to only have my lads paye but it caused me so much hard work i stopped doing it
 
im paye and we employ as paye less attention from HM Customs
 
Prefer to work for companies on a PAYE basis as I like to accumulate a bit of holiday pay and be paid for bank holidays . I only work for agencies who allow me to use my own preferred umbrella company to process payment which is Umbrella Company, Umbrella Companies, Accountant Company, Paye Umbrella & Company - i-Paye . Travel expenses digs etc are deducted from gross earnings on a weekly basis you accumulate holiday pay and your NI stamp is paid . In effect you work for I-paye on a PAYE basis .

I usually pay around 10% of my gross when using I-paye and it saves the ball ache of self assessment tax returns.

Of the agencies that regularly post vacancies in the jobs sub board Forefront and Octain will happily process payment via I-paye or your own preferred umbrella company . RHL insists on using a preferred partner which lets them down IMO.
 
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I employ all the boy's paye, I want them to stay with me long term and I feel this is the only way nowadays. All my paper work is handled by a local accountant who we even give our vat return to check as I've heard a couple of horror stories on that front. Basically, I count the hours worked and he does the rest and I don't have to worry.:cool:
 
Bettertax, this is a good point and also very confusing to some when in regards to insurance. In the good old days you had three types of contractors, PAYE, Labour only and Bona Fide S.C - when the tax laws changed to either PAYE or CIS many companies put their labour as Bona Fide and assumed as a result of this that they required their own insurance and not to be covered under the EMployers Liability (and Public).
This was incorrect - if an employee, trainee, apprentice, sub contractor (Bona fide or not) is working for you and there is a master/servant relationship in place, then the company is required to insure that contractor, not themselves.
A true Bona Fide Sub Contractor is one that, supplies their own materials and labour force, has complete control over the work and activities on site, provides their own insurance relevant to works performed and pays upon invoice for such works.
 
Still seem's to be quite a few self employed though.
 
Self Employed's are the grey area - most believe they should carry their own Public liability insurance which i agree (to cover their own backs) however when 'employed' or contracted to perform work for a principal scaffold contractor their insurance should extend to cover them.
Where this may be different is if the self employed is workfing for an umbrella company, or agency whereby the terms of contract between principal scaffolder and the agency declares the agency or umbrella are required to insure them.
 
I thought the day's of self-employed were over long ago. Is there not some sort of restriction to how many day's you can work for the same firm to remain self employed, and was this not mean't to reduce the grey area in regard to insurance.
 
Bettertax may be in a better position to the above on days employed. Although the HRMC now have no grey areas (simply PAYE or NOT) when discussing wage and works with different construction companies, we find they label their staff as Bona fide, whereas they are really classed as employees. for example a Building company employs staff, they then sub contract specialist works such as Demolition, Scaffold and Roofing work to other companies - these are Bona Fide Sub Contractors. however they may employ a self employed tradesmen to perform some jobbing works, they supply materials and advise on how to undertake the works. He carries his own insurance and does his own tax. who is responsible for his insurance?
 
I thought it was simple, if you are cis then you have insurance and to be bona fide you must be able to prove working on multiple sites for multiple clients. Obviously this is like everything else and not as clear cut as I thought. I still think paye is the way to go, not too dificult with the help of a good accountant and the insurance issue is much simpler, and you still get holiday pay.;)
 
As far as we understood it, if you paid someone for more than 12 weeks, you then had to take them on as paye, unless they supplied materials
 
Well I work for a company as paye and in my leave work as self employed, I would be better off if my paye would employ me as self employed but they dont take scaffolders on as paye, I just pay and account to do my tax return, this is my first full year as doing both, I have paid 20% cis tax on my self employed job but because I earned over 50k through my paye im hopeing I dont have to pay another 20%, need to see my accountant to do my tax return for 2009/10.
 
Hi Tetchy100,

It should not create a problem, if you're accountant is fairly savvy about tradesmen then he should be able to do your return for both your PAYE work and your Self Employed business claiming all the legit expenses for both and hopefully ensure you get a healthy refund to cheer up your new year too!

If however you suspect that this might not happen, then perhaps you should check us out before you commit to same accountant again.

If you need to ask anything, just call us, advice is free to you guys on here and I think you currently get special rates too :)
 
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