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cis card

Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
in Work & Study
i work for a guy who sub contracts of a company and he employs me, cash in hand for two weeks but now ive registered a cis card, or as it now is, just a number they send you to give to your employer..

But does this mean im now self employed?

Do i pay my own tax, i know i have to pay my own N.I cos they said that much, and said that i can be paid by cash and that i should keep a record of my payments.

My boss says he will pay my tax and keep my pay the same, but im worried the taxman might ask for my tax at the end off the year or something?

Also can i claim for travel e.t.c

Anyone know? :confused:

Cheers

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    Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    CIS is the Constuction Industy Scheme for contractors/sub contractors as the tax/NI rules are quite specfic and different to the usual rules covering NI and Income Tax for self-employed/PAYE cases. I dont know much about it as its something that I havent covered at work or through my studies.

    A couple of links

    http://www.businesslink.gov.uk/bdotg/action/layer?topicId=1078982663

    http://www.winters.co.uk/factsheets/construction_industry.html

    If you get best thing to do is speak to your boss and/or contact HMRC for more advice.
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    Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    By registering for CIS you have declared yourself as a self employed person. You give your number to the contractor and he will deduct 20% tax from you, he then pays this over to HMRC on a monthly basis. This is designed to cover all the tax and Class 4 NI due but it's not guaranteed, sometimes there is a shortfall or a repayment due at the end of the year. You will also be paying Class 2 NI which is at a fixed weekly rate and it's payment goes towards your state pension and other NI related benefits.

    You cannot claim for travel between home and the site you are working at but you can claim for travel between sites, for example if your contractor told you to go to site A in the morning, then onto site B in the afternoon - the distance between A & B is allowable. If you went back to site A before finishing work for the day then thats allowable, but you couldn't normally claim expenses if you left Site B and went straight home. Allowable & disallowable expenses are a complex area and it might be a good idea for you to look at the notes which accompany the self employment pages of the tax return

    :)
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    Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    Thanks Joolyknockers, this helps me understand it a lot more. :)

    :thumb:
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