Sole Trader-Taking On Extra Labour

[High Tower]

shut it st johns ambulance!!!

keep the user name mate might deflect some of the tripe that gets sent my way from the jokers on here!!

high tower i have your number!!! you need to advertise your services some where!! lol...! just wait till im on a boring night shift!

We all learnt our antics from you!! You are the chief tripe giver!!

 

[cbw]

I did not at that point have employers liability as they are self employed contractors.

I do now as employing PAYE......Looking through my files and cannot find it, just added it to my public liability

 

[cbw]

Ah maybe a good punch up at Harogate DS1 Vs DS2

 

[DurhamSparky]

Ah maybe a good punch up at Harogate DS1 Vs DS2

nah us yackers will stick together and fight you southerners!!

 

[accordfire]

Thanks DS2

So once i register with CIS as a contractor/employer what insurances are required, would i be right in saying employers liability insurance? How much does this cost roughly.

No, you won't need employers - but you will need to carry sufficient public liability. In any of the cases, your subbies will need to carry their own PL insurance too, which you should keep a copy of and check periodically.

When you register under CIS you effectively become a tax agent, and no more. You are undertaking to pay tax on behalf of those employed by you on a casual basis - the sole purpose of which is so the revenue lose less income from those not declaring their income properly.

The whole reason for the scheme was to try to eliminate cash in hand work....i.e. by making those further up the food chain a little more culpable.

Again, unless you intend to use labour in this way consistently, there's no benefit unless the work you're getting them to do falls entirely within the scope of the CIS scheme.

 

[poirot]

Hi Bill,

So if it was a one off i should be fine just to pay an invoice without making any deductions, but if work got to a stage where i was using a sub contractor on a regular basis i would need to register with cis.

 

[DurhamSparky]

We all learnt our antics from you!! You are the chief tripe giver!!

me...!!! never!

 

[cbw]

Poirot, Thats exactly how I did it for 18months, as long as they give you an invoice your fine.

 

[accordfire]

Hi Bill,

So if it was a one off i should be fine just to pay an invoice without making any deductions, but if work got to a stage where i was using a sub contractor on a regular basis i would need to register with cis.

Yes, essentially - if the work falls within the scope of the CIS scheme.

Occasionals are not an issue - it's when you're using labour extensively in this way on work within the scope of the CIS.

Mostly that's site work, big installs, etc. For small works, it won't really be an issue, or with domestics and so forth.

As others have said - the CIS help line are pretty helpful, and can tell you if the work you're planning/volume is within scope or not.

 

[High Tower]

me...!!! never!

Don't come that innocent nonsense !! Lol

 

[durhamspark]

Yes, essentially - if the work falls within the scope of the CIS scheme.

Occasionals are not an issue - it's when you're using labour extensively in this way on work within the scope of the CIS.

Mostly that's site work, big installs, etc. For small works, it won't really be an issue, or with domestics and so forth.

As others have said - the CIS help line are pretty helpful, and can tell you if the work you're planning/volume is within scope or not.

This is how I understand it as well, and I also don't have employers insurance as they are responsible for their own insurances as self employed tradesman.

When I called the cis I explained that it was infrequent ( a couple of weeks in 1 case) and was told I needed to register on the scheme.

 

[mogga]

the CIS Scheme from what I gather requires that if you use a subby and he solely works for you for longer than 6 months then you must take him PAYE ( ie pay IR MORE tax) one of the firms local to me have 2 firms they swap subbies inbetween the CIS route also saves on employers NI and Holidaypay ect

 

[Amp David]

the CIS Scheme from what I gather requires that if you use a subby and he solely works for you for longer than 6 months then you must take him PAYE ( ie pay IR MORE tax) one of the firms local to me have 2 firms they swap subbies inbetween the CIS route also saves on employers NI and Holidaypay ect

Your right there mogga.

Plus pretty sure you have to file a CIS return every month, regardless and if you miss it then roll on the fines.

The way I do it is do the work for a fellow trademan then give em an invoice for the work done.

Nice and easy IMO keep it simple

 

[lloyd1980]

my accountant told me that as long as the amount paid in 1 year to a person doesnt exceed £ 5000 then you can put them down as casual labour, if its more than this then you need to take their HMRC tax number from them and CIS tax off them and make monthly returns to the revenue. and issue a statement to them like a pay slip with what has been deducted.
I just request an invoice and pay them and leave the tax and ni up to them
plenty of decent chaps willing to work a week here and a week there, once you have 4 or 5 you can call on your fine even in extremely busy periods

 

[rocker]

wtf!!!! Who is durhamspark!!!!

And cbw i aint bloody ginger!! We had this discussion.....

proof!