The Construction Industry Scheme (CIS) is a set of special rules for tax and National Insurance (NI) for those working in the construction industry. Businesses in the construction industry are known as ‘contractors’ and ‘sub-contractors’.
We Connect The Best
Amco Recruits is one of the UK’s fastest growing, reputable CIS payroll providers, acting as an intermediary between you and your subcontractors. By using Amco, a fully compliant CIS provider, you mitigate any of the tax or employment risks associated with paying construction subcontractors. Our service saves you time and money, while also providing you with a hassle-free experience. All it takes is for you to complete one monthly CIS return for us to absorb all the risks.
Our highly knowledgeable team boasts over 8 years of combined experience within the construction sector – all with proven track records. In appointing us, you get to work with an informed, well-connected team, which has built its reputation on providing high quality service with watertight compliance. Our tailored and flexible service adopts a consultative approach, enabling it to provide you with the expert advice you require, in partnership with your trusted legal and tax partners.
Since inception, Amco has demonstrated significant growth. It’s easy and quick to switch to Amco, as we take on all the administration duties – just fill in a single project confirmation and we will do the rest. Amco offers an exceptional level of service, which enables each worker or client to communicate with its team directly. Our payroll, admin team and accountancy professionals are always on hand to resolve pay or tax queries immediately.
CIS Payroll refers to Construction Industry Scheme Payroll. This is a term used in the construction industry when referring to contractors who pay subcontractors to perform work for them. This scheme was developed by HM Revenue and Customs and it only applies to the United Kingdom’s construction industry.
Who does CIS apply to
The CIS can apply to all types of businesses in the construction industry in the UK including:
What is the aim of the CIS?
When a contractor is registered under this scheme, they are supposed to deduct a certain amount of money from the payments that go to their subcontractors and then use that money to pay HM Revenue and Customs. This money is treated as an advance payment to cover the National Insurance and taxes that subcontractors must pay anyway. HM Revenue and Customs set up this scheme so that contractors would hold back money from the subcontractor’s paycheques and use that to pay their taxes for them.
How Amco Recruits Can Help
For genuine self-employed sub-contractors, we offer a comprehensive service enabling you to be paid via CIS with the freedom to engage in long lasting assignments. We take care of CIS deductions and monthly returns to the revenue and fully responsible for all necessary documents submitted to HMRC on behalf of the Contractor.
Umbrella Company is the new solution for using sub-contractors within the construction industry or hiring any other staff the simple way. Our service is designed especially for those construction companies or agencies who presently engage their workers through CIS but might fall short of the strict criteria outlined by HMRC as well as free them from day to day supervision for the employees’ work.
The way an Umbrella Company works is simple. The contractor becomes an employee of the Umbrella company (the client). This means that the client will pay the Umbrella Company and the Umbrella Company deducts the necessary PAYE and national insurance contributions and pays you your salary.
There are 2 types of National Insurance Contributions – employees’ and employers’ NICs
The umbrella company will deduct employers’ NICs from the value of any invoices submitted to the client. You will then have to pay employees’ NICs on your income.
For the 2019/20 tax year, both type of NICs are payable on earnings above £166 per week – at 12% (employees’) and 13.8% (employers’).
With a PAYE Umbrella Company, you become an employee of the company. Each week or month you instruct them to invoice the client based on your time sheet. They then pay you a net salary after deducting national insurance contributions and income tax on all your earnings.
With Umbrella Company payroll you will have access to certain statutory benefits including maternity and sick pay with an inclusive insurance package.
With regards to expenses: if the client has agreed to reimburse certain costs, they will be paid to you in addition to your salary.
How Amco Recruits Can Help
Temporary workers who want to retain their employed status, move freely between assignments whilst we take care of PAYE Tax and National Insurance HMRC deductions. Umbrella employees are also entitled to statutory benefits.
Expenses for travel and subsistence: if the client company will not be reimbursing any of your costs, but they would be allowable as expenses according to HMRC rules then Amco Recruits will process those costs with your salary and you will receive tax relief on them.
If you have never used an Umbrella Company before and are new to the whole concept, give us a call and we will explain things in detail.