Fiancial advice CIS self employed

[jim 73]

I work for a company through an agency and get paid through a payment company which takes 20% tax out my wages through cis payments .my question is what documents do i need to show for financial requirements? Before this previously i was employed PAYE.i have tried reading the FM SE appendix and am a bit confused.can anyone shed some light on what i need to show thanks

[7by7]

By CIS I assume you mean you are a Construction Industry Scheme subcontractor.

Quote

1. Overview

You should register for the Construction Industry Scheme (CIS) if you work for a contractor and you’re one of the following:

• self-employed
• the owner of a limited company
• a partner in a partnership or trust

 

From what you say you are self employed, in which case I believe that you come under 9. Self-employment or Director of a specified limited company in the UK of the financial requirement and so need to provide the documents relevant to your situation and whether you are relying on the last full financial year or your average income over the last two full financial years. 

 

See also para 7 of the Immigration Rules Appendix FM-SE: family members specified evidence

[Tony M]

As a CIS worker you have a choice. You can go down the self-employed route, or you can go down the salaried employment route. If you choose the salaried employment route, you must the specified requirements of a salaried employee. The guidance is :

A person working as a subcontractor under the Construction Industry Scheme (CIS), administered by HMRC (and under which the contractor deducts tax and National Insurance contributions from the payments made to the subcontractor), can, as an alternative to meeting the requirements of Appendix FM-SE in respect of self-employment, choose instead to count their CIS income as income from salaried employment. If they do, they must meet the requirements of paragraph 2 of Appendix FM-SE for specified evidence for salaried employment, subject to reflecting their status as a CIS contractor rather than an employed person. So, they must provide CIS payment slips in place of payslips, a letter from the CIS contractor in place of an employer’s letter and the required personal bank statements. If a person cannot provide this evidence, or it is not clear that they are covered by the CIS scheme, their income should be treated as income from self-employment and the relevant self-employment evidence must be provided. See section 9 of this guidance.

 

You may have a CIS card from HMRC, but I'm not sure that they still issue them. If not, your wage slip will normally state that you are being paid as a CIS employee.   Possible problems may occur if you are being paid through an umbrella company.

[jim 73]

38 minutes ago, Tony M said:

As a CIS worker you have a choice. You can go down the self-employed route, or you can go down the salaried employment route. If you choose the salaried employment route, you must the specified requirements of a salaried employee. The guidance is :

A person working as a subcontractor under the Construction Industry Scheme (CIS), administered by HMRC (and under which the contractor deducts tax and National Insurance contributions from the payments made to the subcontractor), can, as an alternative to meeting the requirements of Appendix FM-SE in respect of self-employment, choose instead to count their CIS income as income from salaried employment. If they do, they must meet the requirements of paragraph 2 of Appendix FM-SE for specified evidence for salaried employment, subject to reflecting their status as a CIS contractor rather than an employed person. So, they must provide CIS payment slips in place of payslips, a letter from the CIS contractor in place of an employer’s letter and the required personal bank statements. If a person cannot provide this evidence, or it is not clear that they are covered by the CIS scheme, their income should be treated as income from self-employment and the relevant self-employment evidence must be provided. See section 9 of this guidance.

 

You may have a CIS card from HMRC, but I'm not sure that they still issue them. If not, your wage slip will normally state that you are being paid as a CIS employee.   Possible problems may occur if you are being paid through an umbrella company.

Thanks for the replies looks like i am self employed but not using a ltd company just get tax deducted at 20% and paid into current account

[Tony M]

The choice to be treated as self-employed or a salaried employee is yours. If you are issued a wage slip showing your gross and net salary, and your tax payments, then you can be treated as a salaried employee.

[rasg]

If you choose the self employed route you will need a full set of accounts prepared by your accountant along with an SA302 from HMRC.

 

Much simpler to be salaried.

[jim 73]

How can you be salaried on cis ?

[Tony M]

32 minutes ago, jim 73 said:

How can you be salaried on cis ?

 

As I showed above, in the guidance, the UKVI give you (as a CIS worker) the option of choosing to be treated as self-employed, or as a salaried employee.

 

A person working as a subcontractor under the Construction Industry Scheme (CIS), administered by HMRC (and under which the contractor deducts tax and National Insurance contributions from the payments made to the subcontractor), can, as an alternative to meeting the requirements of Appendix FM-SE in respect of self-employment, choose instead to count their CIS income as income from salaried employment

 

The documentation required for treatment as a salaried employee (wage slip showing tax paid, bank statements, etc) is a lot easier than the self-employed requirements.  It's your choice, of course.

Edited July 30, 2017 by Tony M

[jim 73]

Thanks for the replies .i am going to go the salaried route.just one more question how many wage slips and bank statements will i need? Because will have been cis for under 6 months? Can i use my paye wage slips before this to make it up?