IR35 REFORMS: IS CIS RIGHT FOR YOU?

IR35 REFORMS: IS CIS RIGHT FOR YOU?

Oct 24, 2019

If you are a limited company contractor in the construction industry, new off-payroll rules may mean you have to consider alternative working options.

The reforms to off-payroll in the private sector are causing some end hirers to reconsider their use of limited company contractors . This is because liability for IR35 assessment – the checks which surround whether a contractor is, in fact, a disguised employee – will rest with the end hirer if the new rules are adopted. We will know more after the Autumn Budget on November 6th.

If you are affected, you will need to review how you are working and look at your options. We specialise in supporting construction industry contractors, so we are able to provide the information and advice you need to make an informed decision about your future.

Whilst it may still be possible to continue to operate through your limited company (please talk to us), there may be other options you need to consider, such as whether to become an employee of an Umbrella company or to join the Construction Industry Scheme (CIS).

Umbrella company

An Umbrella company is a good option if you are subject to any level of supervision, direction or control, as it will solve any tax and compliance issues connected with your role. We provide Umbrella company services to thousands of contractors in the construction industry, taking care of all aspects of pay and compliance and ensuring people get paid correctly and on time. Whilst your take-home pay with Umbrella will be lower than if you are a limited company contractor, you will receive other benefits such as access to a company pension scheme, holiday pay, sick pay and the peace of mind of insurance cover, including our best-in-class personal accident cover which includes your commute.

CIS

CIS may be a good option if your role is completely autonomous in that you operate without supervision, direction or control (SDC). We provide a comprehensive Contractor Assessment which covers SDC, among other criteria, to work out if you meet the criteria for CIS.

When working this way, tax is deducted directly from your payment and that National Insurance contributions are made at the end of the year in your year-end tax return. You are also able to claim a tax rebate on any work-related expenses you have incurred during the year – we provide a straight-forward tax return service to help you claim any rebate you are entitled to.  You can find out more about CIS.

What to do next

Find out more about CIS and how it works, or get in touch to discuss your working options with a member of our expert team. We can provide advice and guidance to all construction contractors and recruitment agencies on the off-payroll reforms and the options available to people who may be affected.

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