CIS Deductions

[captain213]

Hi

Its my first post so please ignore my naivety if I am breaking any rules here. I am sure its definitely not a great time to post a question but i am sure there might be someone to help.

I am a contractor and also a sub-contractor. I have hired an umbrella company to manage CIS for me. Just want to understand how does it work really. Would it be not better to employ the Guys directly as pay them as Subbies. At the moment, together with CIS returns from both us and Umbrella Company

For the workers to get 8000

I’m paying 12000 – 20% CIS deductions to HMRC = 10000 to Umbrella Company
Umbrella Company 10000 – 20% CIS deductions to HMRC = 8000 to subbies
Correct?

Could someone tell me please how much would it cost me to pay the workers directly as employees if I want for them to keep the 8000?
If it comes to over 30% and I have far more responsibilities (holidays, pension, PAYE…) then I’ll keep it that way,

thank you for any help.

[pawncob]

https://www.gov.uk/government/collectio ... lculations

[captain213]

Hi

Thank you for your reply but unfortunately there is no calculator to check CIS deductions in that link?

I will appreciate if some guru can confirm my calculations to help me understand.

Thanks.

[pawncob]

You want to treat them as employees. The calculator shows the deductions due.