At Pebble, we are specialists in a range of supportive services for subcontractors and self-employed people, acting as one-stop-shop to remove the stress and worry from dealing with all aspects of financial processing and management.
Our aim is to help to make managing personal tax and insurance a much easier feat for sub-contractors. Taking away much of the stress and worry that’s often linked to working in a sub-contractor (or self-employed) role, we can deal with payroll admin, personal insurance, and any other tax obligations, all the subcontractor needs to do is sign up and pay our straightforward fee.
How it works is simple: for an annual fee, at Pebble we can offer our clients all the support that they need to better manage their financial admin that comes with working in a sub-contractor role. This includes dealing with the ins and outs of managing financial admin and paying the right amount of tax and insurance.
What is CIS registration and why is it important?
The construction industry scheme – also known as the CIS scheme – applies if you work for a contractor as a sub-contractor in the construction industry but not as an employee.
Under the CIS scheme, contractors can deduct money from a sub contractor’s payments and send that money directly to HMRC. These deductions are classes as advanced payments towards the sub contractor’s tax and national insurance.
To be eligible for this scheme, the contractor – not the sub-contractor – must be registered. If a contractor is not registered, the sub-contractor will have higher rates of tax and national insurance deducted from their income.
What happens if you are not registered under the Construction Industry Scheme (also known as the CIS scheme)?
For any contractors not registered under the Construction Industry Scheme the tax rates will be different to the slightly lower rates offered under the CIS scheme.
For any contractors who are not registered under the Construction Industry Scheme the tax rates tend to be around 20 to 30 per cent higher than the lower CIS rates.
The good news is that it is possible to register for the CIS scheme, it’s simply a case of making sure that you have everything organised to do so.
To be able to register for the CIS scheme, you will need to have a legal business name – this can also be a trading business name if it’s different to the name you use for your legal business.
To register, you will also need your National Insurance Number and your unique taxpayer reference number (also known as your UTR) for your business accounting. In addition to your VAT registration number, if you’re VAT registered. The good news is we are here to help, get in touch with Pebble today and make payroll and CIS simple.
