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Labourer in construction looking to be paid under CIS to avoid 30% tax
Hi
I'm very confused with my current situation as it involves being registered with HMRC under the CIS as a subcontractor (Carrying out their own work) but being paid via an agency (who is also a subcontractor) through an umberella company who are paying me under PAYE.
I've been labouring for about 2 years now, some of it semi skilled and some just basically pushing a broom, it was only recently i found out about CIS so i registered with HMRC, i have a UTR number and last year i completed my first tax return, which was simple because i only worked for two companies then and had both p60's so i could do it myself, i also wasn't registered under CIS back then.
But, today I am more skilled, i bring tools with me and have my own protective equipment, i am on a small site whereby temporarily i have been given the role of temporary site manager...but without the remuneration that goes with the responsibilities, i am being paid £7.83 per hour, the same as the other labourers but my responsibilities include meeting the clients on site, arranging collections and deliveries of materials on the site, organising and motivating the labour and ensuring everyone is adhering to the health and safety regulations, i also have to send in the time sheets and answer questions about pay and deal with queries from newly employed labourers. I have a lot more on my plate than being told where to sweep my broom!
Yet i speak to the umbrella company who legally are my so called 'employer' and when i asked them to put me on CIS it was as if i had mentioned a very taboo word and they came up with a whole list of reasons why they wouldn't put me on it despite me telling them that A) i am registered with HMRC as CIS subby B)i'm using my own equipment C) I am in a position of responsiblility greater than a standard labourer. They tell me 'doesn't matter, you're a worker for us and you are still below the director and whilst you have someone above you who advises you on a schedule of works you can't be paid via CIS' now i told this fella that surely everyone has someone 'above' them to a certain extent, even a plumber on his own can get kicked off a building site for not following the site rules or breaching health and safety.
Anyway, i have employed the services of an accountant last week and during my chat with him he advised me to speak to the contractor directly and ask them to pay my directly via invoce.
My main question is this. If you are a labourer, you purchase your own PPE, some tasks may be directed...others you are expected to deal with as and when they arise, do you have a legal right to request payment under CIS? the only other option being, you then pay £20 per week for an umbrella company to process your pay through PAYE to realise that the advertised rate of £10.50 ph actually still only works out at £7.83 ph when the subcontractor fee is presented on your payslip before income tax and NI
I'm very confused with my current situation as it involves being registered with HMRC under the CIS as a subcontractor (Carrying out their own work) but being paid via an agency (who is also a subcontractor) through an umberella company who are paying me under PAYE.
I've been labouring for about 2 years now, some of it semi skilled and some just basically pushing a broom, it was only recently i found out about CIS so i registered with HMRC, i have a UTR number and last year i completed my first tax return, which was simple because i only worked for two companies then and had both p60's so i could do it myself, i also wasn't registered under CIS back then.
But, today I am more skilled, i bring tools with me and have my own protective equipment, i am on a small site whereby temporarily i have been given the role of temporary site manager...but without the remuneration that goes with the responsibilities, i am being paid £7.83 per hour, the same as the other labourers but my responsibilities include meeting the clients on site, arranging collections and deliveries of materials on the site, organising and motivating the labour and ensuring everyone is adhering to the health and safety regulations, i also have to send in the time sheets and answer questions about pay and deal with queries from newly employed labourers. I have a lot more on my plate than being told where to sweep my broom!
Yet i speak to the umbrella company who legally are my so called 'employer' and when i asked them to put me on CIS it was as if i had mentioned a very taboo word and they came up with a whole list of reasons why they wouldn't put me on it despite me telling them that A) i am registered with HMRC as CIS subby B)i'm using my own equipment C) I am in a position of responsiblility greater than a standard labourer. They tell me 'doesn't matter, you're a worker for us and you are still below the director and whilst you have someone above you who advises you on a schedule of works you can't be paid via CIS' now i told this fella that surely everyone has someone 'above' them to a certain extent, even a plumber on his own can get kicked off a building site for not following the site rules or breaching health and safety.
Anyway, i have employed the services of an accountant last week and during my chat with him he advised me to speak to the contractor directly and ask them to pay my directly via invoce.
My main question is this. If you are a labourer, you purchase your own PPE, some tasks may be directed...others you are expected to deal with as and when they arise, do you have a legal right to request payment under CIS? the only other option being, you then pay £20 per week for an umbrella company to process your pay through PAYE to realise that the advertised rate of £10.50 ph actually still only works out at £7.83 ph when the subcontractor fee is presented on your payslip before income tax and NI
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