The general belief in the construction and recruitment sectors is that CIS is a legislative nightmare. This might well be the case and many self-employed workers and recruitment agencies were quick to dismiss the scheme when HMRC made changes back in April 2014 resulting in a move towards umbrella schemes or back to PAYE.
The dust has since settled and we think it’s time to look at CIS again. It may not be right for everyone; there are certainly lots of workers out there who were previously paid CIS but wouldn’t comply with the strict legislation and are better suited to working as an umbrella employee or being paid PAYE. CIS however is still a valid scheme and at Exchequer Solutions we have continued to offer CIS to contractors in the construction sector.
For those who are confident they can demonstrate that they are not subject to supervision, direction and control it can remain the best approach. If you have workers who you believe would meet the criteria for CIS then speak to us and we’ll be happy to help.
Many individuals moved to PAYE or umbrella when the legislation changed because of concerns over compliance but believe CIS might still be right for them. CIS is still the most tax efficient approach for many people who work in the construction sector and meet all the relevant criteria. If you are dealing with workers who are self-employed, work on contracts and decide how and when their work is carried out and aren’t supervised then speak to us, we may be able to help.
We know that one of the main reasons agencies have dissuaded their candidates from CIS is the possibility of being found non-compliant by HMRC and facing fines or repercussions. We have the knowledge and experience to help ensure that individuals are being paid via the most appropriate route for them. We will accept individuals who meet the CIS criteria and can offer agencies insurance which should give you peace of mind. Find out more about our CIS protection here.
