Working as a contractor can be tough at times. Some contractors who work like this find that the busy schedule of a contractor leaves little time to handle the administrative tasks that come with it. If this sounds like you, singing up with a contractor umbrella may be the best option for you, giving you security and the peace of mind of knowing that your payments are in order. In addition, you may want to consider a cis payroll service, which enables you to receive your payments in the easiest way possible. Payroll services like these are ideal because they are specifically used by established contractors, sub-contractors, sole traders and partnerships.
What is usually referred to as CIS stands simply for the Construction Industry Scheme. It generally applies to contractors and subcontractors who are in mainstream construction work. Essentially what happens is, under the scheme a separate company takes on the role of the contractor by fulfilling all the administrative tasks associated with the job. HM Revenue and Customs designed the scheme, and those who wish to sign up will need to first visit the HM Revenue and Customs website in order to be given a Unique Taxpayer Reference Number, without which you cannot participate in the scheme. There is no long term commitment involved in signing up; while some contractors need a contractor umbrella for a few weeks, others will use their services for a number of years.
Once you have your Unique Taxpayer Reference number, you will be identifiable on the revenue and customs system. The next steps are to send the number, as well as your name and National Insurance number, to the company you want to register with. The tax rate on those with a UTR is 20%, but 30% for those without it. Finding work and sorting out rates is still up to the individual contractor, as is the end-of-year expenses list. By filling in a list at the end of the year of all the expenses incurred throughout the year, you can offset these against your tax rate.
Those working in the construction industry may wish to register with a contractor umbrella for a number of reasons. For many, the simple time-saving element of being on the cis payroll makes it worth signing up. If you don’t have to go through paperwork to make sure you get paid, you might be able to fit in a trip to the playground with the children, or another pint at the pub. Payroll services are there for you to make the most of – it’s up to you to go ahead and do it.
Please visit http://www.liquidfriday.co.uk/ for further information about this topic.
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