Hello very confused

[Ben9323]

That's confused me even more. If I'm not employing anyone I don't register for Cis but if I'm not register d for Cis how do I deduct CIs from my sub contractors.
For example I'm company A I use company B which is another led company to do work.
The people who carry the work out are employed by company B not my company. Therefore I'm not an employer.
So I don't get what I'm meant to do there can I not register for Cis as a contractor but not an employee. I thought you pay your own employees via paye like my employer does with me now but there subcontractors get payed via a bank transfer with the CIs deducted.

So how do I go about setting up I need to register with CIs to be able to get subbies to do my work so I'd register as a contractor. Are you saying I can't do this without employing anyone

[Ben9323]

If that makes any sense to you I'm a bit lost as I am a contractor using sub contractors but me myself are not sub contracting and have no employees so therefore am not listed as an employer.

This is why people don't go through with making a company as all the info out there is so contradicting and hmrc just read a script when you ask them a question or ask if you've read the 100 odd page booklets that still leave you confused.

So if I started said ltd company regstered as a contractor with CIs could I do that with no employees because I'd be using sub contractors etc therefore I wouldn't be subject to Cis myself because I'm not subcontracting my company. And I just do the CIs returns. Therefore I pay the other subcontractors out of my company account.

[GlobalTaxAdviser]

Hi

You need to register for CIS if the work comes under the scope of construction ie preparing, installation, building etc

Its not case of employing which you are not but you are getting the work done through subcontractors then you need to register for CIS, verify them, deduct 20,30 or 0% and submit Subcontractors Returns and pay any due to by 19th of the month

IF you are a subcontractor for anyone else then your contractor will make either 0 ,20, 30% deduction deduction and you will submit a EPS (through payroll) for the CIS Tax suffered. Apologies if had confused earlier with the terminology ie contractor v sub contractor.

Kind Regards

GTA

[Ben9323]

Ok thank you that makes a lot more sense now.

Also as director of company and shareholder.
My day job I'm a qualified air con engineer etc etc and I also can do a lot of other work. Am I legally allowed todo these jobs and the company would be payed or would that not work if I'm not employed as in a sense I'd be doing the job for free personally but making my company more money instead of subbing things I'm capable of doing.

[Ben9323]

And also I would not need payebthen and could pay sub contractors by bank transfer yes? As long as I keep record of it and make deductions etc.

[GlobalTaxAdviser]

Ok thank you that makes a lot more sense now.

Also as director of company and shareholder.
My day job I'm a qualified air con engineer etc etc and I also can do a lot of other work. Am I legally allowed todo these jobs and the company would be payed or would that not work if I'm not employed as in a sense I'd be doing the job for free personally but making my company more money instead of subbing things I'm capable of doing.

Yes you can do these jobs and your customers would pay the company

[GlobalTaxAdviser]

And also I would not need payebthen and could pay sub contractors by bank transfer yes? As long as I keep record of it and make deductions etc.

Correct bank transfer is always best as provides security and evidence - not advisable to pay cash which happens regularly in the construction industry. Record keeping is important and you must give subcontractors a tax certificate proving that tax has been deducted. Having good accounting software will help.

Kind Regards

GTA

[Ben9323]

Yeah obviously an air con maintenance doesn't make sense to sub out but a installation would as I wouldn't have the funding for all the parts for the first few months until the companies made some money.

And I can just pay subbies via bank transfer deduct any cis and do a return and also give them there copy of the form to prove I've done it which is called a construction and industry scheme payment and deduction statement I fill this out and give it to subcontractor when I pay them and then fill out returns for any subbies and send before the 19th.

[Ben9323]

Would that cis deduction payment form be sent to the subcontractor as there proof of it and then my proof would be me submitting the cis monthly.

[GlobalTaxAdviser]

Correct