If your candidates are working in the construction industry, Churchill Knight can help them with their accountancy and payroll. There are two preferred methods of getting paid in construction, through a limited company or as a sole trader. We can provide your candidates with both of these services and help them register for the Construction Industry Scheme (CIS) if they have not done so already.
If your candidates have already got their own limited company, or are looking to open one for the first time, Churchill Knight & Associates Ltd is here to help. Our CIS contractor accountancy is designed to help your candidates maximise their take home pay whilst operating in full compliance with HMRC legislation and the CIS tax rules.
There are many benefits for your candidates who decide to have a CIS registered company and these include, but are not limited to:
- Tax deductions of 20% and not 30% compared to if they were not CIS registered.
- The opportunity to apply for gross payment status, meaning your candidates will be paid in full and responsible for their tax and National Insurance (NI) deductions at the end of the year.
- The option to pay themselves with dividends because they will be the director and shareholder of their own limited company.
- The ability to claim expenses for business-related costs including tools and equipment.
- Tax relief on pension contributions.
- Extra control over their finances and the ability to make additional tax savings.
Churchill Knight & Associates Ltd has been taking care of the accounts of CIS registered contractors for 20 years. We will be able to assist your candidates with becoming CIS registered, incorporating a new company, corporation tax, PAYE registration, VAT registration, ongoing administration and much more.
Your candidates may decide that they do not want to have their own limited company but still want to work in the construction industry. This is no problem at all because Churchill Knight CIS is the perfect service for them.
Churchill Knight CIS is a service provided by Churchill Knight Umbrella, but confusingly, it is completely different to a typical umbrella service because your candidates will not become our employee. Let us explain how it works:
- Your candidates will remain self-employed and maintain their sole trader status, unlike contractors working through an umbrella company (who will technically become an employee of the umbrella company).
- Your candidates will be required to go to work as normal and keep a record of the hours they have clocked up. This is usually done by having timesheets completed by the end client. Once these are signed, your candidates will be required to send us a copy.
- The client will then pay Churchill Knight Umbrella Limited your candidates’ salaries.
- If your candidates are CIS registered and have their own UTR, Churchill Knight Umbrella Limited will pay them their salaries minus a 20% tax deduction that will be paid to HMRC on account.
- If your candidates are not CIS registered and do not have their own UTR, Churchill Knight Umbrella Limited will pay them their salaries minus a 30% tax deduction that will be paid to HMRC on account.
- If your candidates have overpaid their taxes over the course of the year, they may be entitled to a tax rebate from HMRC and this is something the Churchill Knight Personal Tax Department can assist them with.
Using Churchill Knight CIS will provide your candidates with the peace of mind they need because they will know that their tax affairs are in order and that there is no possibility of an unwelcomed HMRC investigation in the future.
It is incredibly easy for your candidates to become CIS registered but they must be aware that the process can sometimes drag on for up to 8 weeks.
Your candidates will need to ring the dedicated CIS HMRC helpline and declare their intention to become CIS registered. The number is 0845 3667899. Alternatively, there are a number of useful resources on the HMRC website that can assist them with becoming CIS registered.
When your candidates have successfully become CIS registered, they will be assigned their own Unique Tax Reference (UTR) number and this is critical in order for them to be paid correctly.