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Does this company need to register for CIS /PAYE

LeedsAccountantLeedsAccountant Just JoinedRegistered Posts: 4
I am acting for a company and I am a little unsure if they need to register for CIS/PAYE

They do not employ any sub contractors but will occasionally be paid as sub contractors with tax deducted.

The directors previously owned a separate company and were not registered for cis but this became a problem when tried to reclaim tax paid as a sub contract so I am a little confused as to what to do.

They have there UTR no for the company so will they need to register for CIS or not? can the tax deducted by contractors just be claimed against corp tax?

Comments

  • RASRAS Well-Known Registered Posts: 124
    If the company doesnt register as a subcontractor, then will be deducted 30% CIS.

    Not clear from your post, will the directors be paid a salary? Not sure how it will work with RTI but assuming the directors are only paid up to the personal allowance and no payments to subcontractors then I believe the CIS will only be reclaimable against future corporation tax, which I understand isn`t straightforward either.

    If the turnover is sufficient, they may be able to get gross CIS status.
  • LeedsAccountantLeedsAccountant Just Joined Registered Posts: 4
    So will it be best to register as a sub contractor?

    Directors will be paid a salary up to personal allowance, any idea how to reclaim CIS tax against corp tax?
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