Construction Industry Scheme Payroll
Explore our fully compliant CIS solutions, tailored to enhance net income and reduce tax and NI liabilities.
Industry Leading CIS Contractor Solutions
Team Construction Limited, part of the Futurelink Group, is registered with HMRC with Gross Status under the Construction Industry Scheme. We provide two, fully compliant CIS payroll solutions for workers:
CIS Payroll – Self-Employed Solution
Futurelink’s CIS self-employed solution is ideal for workers who have registered with HMRC as self-employed, where they have been given a 10-digit UTR number. Futurelink takes care of invoicing, receiving payment from the agency or company, processing the worker’s pay, and deducting 20% tax in line with CIS regulations. Workers who are unverified, meaning they have yet to register as self-employed with HMRC, are taxed at 30% until fully registered.
CIS PAYE Umbrella – Employed Status
Futurelink’s PAYE solution is ideal for workers who do not have a self-employed status or fall under IR35. Opting for the umbrella solution means the worker becomes “employed” by us while complying fully with CIS, as the company has gross status. Team Construction Limited deducts the relevant tax and NI before paying the worker, so no tax return is required when using this solution. Workers will be eligible for SSP (Statutory Sick Pay) and SMP (Statutory Maternity Pay), and a comprehensive workplace pension scheme is also provided.
By utilising the services provided by the Futurelink Group, we can keep workers fully compliant with HMRC, protect the worker’s status, and help to maximise their net pay.
Get in touch with us today to discover which of our payroll solutions is best suited for your needs, and how you can maximise your take-home pay.
What are some of the primary benefits of using Futurelink’s CIS payment solutions?
We have put together some helpful information for you regarding CIS.
The Construction Industry Scheme also known as CIS, is a statutory tax scheme that was created by HMRC for those who work in the Construction industry. The scheme was brought in to effect in 1971 to protect construction workers from false employment, and to minimise tax evasion in the industry. The original 714 certificates have evolved somewhat since their inception and today, a worker’s Unique Tax Reference (UTR) number has simplified the process.
CIS applies to the majority of construction workers who are self-employed and that work within the UK (including within UK territorial waters up to the 12-mile limit). However, there are some job roles associated with construction that are exempt from the scheme.
• Site preparation
The scheme does not apply to construction work carried outside of the UK or to those who are permanently employed by a contractor. However, a business located outside the UK that conducts construction work within the UK falls within the scheme and is required to register accordingly.
The worker must be registered with HMRC under the CIS Scheme to obtain a UTR number (Unique Taxpayer Reference). Once the UTR has been verified, we will deduct the following amount from the worker’s gross pay.
- 20% for registered subcontractors
- 30% for unregistered subcontractors
The deductions count as advance payments towards the subcontractor’s tax and personal NI. Alternatively, if workers do not want deductions to be made, they can register for Gross Payment Status online.
CIS is an efficient scheme as it enables Futurelink to handle all tax deductions and compliance, thereby reducing the worker’s administrative obligations. The worker would still have to complete an end of year self-assessment (tax return) and contribute NI (Class 2 & 4). Typically in doing so, workers are eligible to receive a tax rebate on their contributions.
The deadline for submitting paper returns is 31st October within the same tax year. If the worker submits the electronic tax return, the deadline is the 31st January.
Businesses and workers may encounter significant fines if they fail to comply with the regulations and deadlines associated with the Construction Industry Scheme. For example, missing CIS return deadlines can result in the following penalties:
- 1 day late = £100
- 2 months late = £200
- 6 months late = £300 or 5% of the CIS deductions on the return, whichever is higher
- 12 months late = £300 or 5% of the CIS deductions on the return, whichever is higher
Companies and contractors could also be penalised for incorrectly giving the wrong employment status for a subcontractor which can result in fines up to £3000.
Futurelink can help by eliminating the risks of potential fines and protecting the worker’s self-employed status.
You can see some of the lovely words from our clients below…
How Do You Get Started?
If you want to know more about our CIS Scheme and how we can help take the pressure off you, please get in touch.
Here at Futurelink, we will help you throughout the whole process. Get in touch with our team now and speak to an expert for an initial consultation completely FREE of charge.