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What is the Construction Industry Scheme (CIS)?
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The CIS scheme is a government initiative which controls how payments are made to contractors within the Construction Industry. Since April 2007 all contractors who fall within the construction industry Scheme have to register, or work for a registered business.
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How do I register with HM Revenues & Customs CIS Scheme?
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Simply call the CIS Helpline on: 0300 200 3210. Registration takes 20 working days and is FREE. Upon registering, HMRC will issue you a Unique Tax Reference (UTR) number which we will use to determine the amount of Tax to be deducted from your gross payment, this can be at 0%, 20% or 30%. We make the relevant Tax deduction and pay this to HMRC on your behalf. Please note, this is only a Payment on Account and upon submitting your Self Assessment there may be a balancing Tax figure to pay or to be refunded.
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Is the CIS scheme for me and what are the benefits?
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Your job role can be anything from a welder, plumber to surveyor as long as you are contracting within the Construction Industry only. You are already Self Employed but want to take more assignments through recruitment agencies. You work within the Construction Industry and are thinking about becoming Self Employed. You want to reduce your paperwork burden and relax knowing that your Tax deductions are taken care of and paid to HMRC. (CIS Subcontractor Deductions are Payment on Account only) This is an effective and simple way for contractors working within the Construction Industry to receive a regular income whilst taking assignments through an agency.
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How do your services compare to traditional Self Employment?
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Traditionally you have the hassle of running your own business, quoting for jobs, generating and chasing your invoices, waiting 30 days for payments, completing Tax returns. You may also find that some recruitment agencies are not prepared to deal directly with Sole Traders. Under either of Paycheck’s CIS services, you accept the assignment with the agency, we raise the invoice as required by the agency (VAT Included), we chase any invoice payments, the agency send us the money every week or month and we pay the monies to you on the same day, so you receive a regular income. You do not need to wait 30 days for payments. We make the Tax Deductions and pay these to HM Revenue and Customs.
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How does using Paycheck Services Work?
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We will sub-contract your services to the recruitment agency/client of your choice. We will raise all the invoices and process all the payments. The relevant deductions are taken and paid to HMRC on your behalf, Then remaining funds are transferred to your personal bank account. A payslip or statement of payment and deduction will be posted/e-mailed to you every time a payment is made to you. Our Services are flexible to meet your needs, if you don’t work, you don’t pay us.
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Working for an agency or direct with your client?
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Either way is fine with us. We are here to make life easier for you (the contractor) as well your Agency or end client. We help by reducing administration and the day to day paperwork for both of you.
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When do I get my money in the bank?
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Payments are made to you the same day that your agency/ end client pays us. This is typically done through our Automated Banking Software straight into your account.
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What is the cost of your services?
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Dependent on which service you choose, our charges are £15.00 or £19.50 per week worked. However, This is not the actual cost to you as our fee is classed as a business expense and deducted prior to the tax calculation. Your out of pocket expense for using us is as little as £9.94 on our CIS Umbrella Service or a Market Beating £12.00 for our CIS Subcontractor Service. You won’t find a more reliable service for a cheaper price anywhere in the UK.
