CIS contractor help

knowledgeispower
knowledgeispower Registered Posts: 32 New contributor 🐸
in General accounting discussion
Hi there,

Please can someone help me with clarifying a few things...I have dealt with CIS subcontractors and their tax return which was quite straight forward. Now, One of them wants to set up a Ltd co and take bigger contracts on and also take some subcontractors on.
So question:
Once he has the ltd company set up (he'll be the only director) :
1.Need to register as employer/contractor Correct?
2.Need to verify his subcontractors correct?
3.Can I use a Payroll Manager software to prepare his subcontractors' payment certificate?
4.What happens to his pay? Can he still take min wage + dividends?
5.Is he or his company subject to any CIS deductions?

A scottish lady at HMRC I have spoken to was trying to help but we were really not understanding each other :(

I'd appreciate any help on these or anything else I should know...

Thank you :)

Vik

Comments

  • peaman
    peaman Registered Posts: 123 Beyond epic contributor 🧙‍♂️
    Hi Vik

    1. Yes, the company will need a PAYE scheme and be registered as a contractor and a subcontractor. You can set up the PAYE scheme but the easiest way for the company to register for CIS is to get the director to call the CIS helpline.
    2. Yes, verify subbies the usual way, through the CIS helpline or payroll software.
    3. Is Payroll Manager the Moneysoft software? If it is, then yes, it can be used to submit the CIS300 returns and produce the subbie payslips (it's what i use!).
    4. Yes.
    5. It's the company that has the CIS deducted from it's income. This should be declared in the payroll software each month as it will be offset against any PAYE/CIS liabilities that are due. If at the fiscal year end there is a CIS balance due to the company you will need to write to HMRC and ask for the repayment (there may be a long wait!).

    Good luck!

    Richard
  • Londina
    Londina Registered Posts: 814 Epic contributor 🐘
    knowledgeispower said:

    Hi there,

    Please can someone help me with clarifying a few things...I have dealt with CIS subcontractors and their tax return which was quite straight forward.
    Vik

    is it really straight forward a tax return for a CIS contractor? Can he claim back the entire 20% the employer deduct from his payment? What else should be included? Thanks in advance for any info

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