If you employ someone in a self employed capacity and you do not own the building you are working on, you will be a contractor in the Construction Industry Scheme (CIS).
You must register with HM Revenue and Customs, who will then give you a new refence as a contractor and a payslip book. You will need to get the Name, National Insurance Number and Unique Taxpayer Reference (otherwise known as their Self Assessment number) from each contractor. Then before the first payment you will have to get from HM Revenue & Customs the rate of deductions which will apply.
If you do not get these numbers from the sub-contractor you will have to deduct 30% from all payments to this sub-contractor.
Deductions apply to all monies paid to a sub-contractor except VAT, the Training Board Levy, fuel used on site(in generators, JCBs etc) and materials Supplied.
In addition if you are registered for VAT you may have to apple the CIS VAT Reverse Charge scheme.
For more information contact Will Johnson on 07967 522374.
