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Does this sound right?

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    Does this sound right?

    This is baffling me. I work in construction, since the IR35 blow up I've only been able to "work" on what is basically an IR35 through an umbrella basis which means I pay both bits of NI, tax on what is left etc. Pretty much I worked out 46% of my top line goes to the government one way or another, makes the risks I accept doing my job pointless for the "wages" I get, would you wish to put yourself at risk of going to stay at HMG's residence if you mess up for instance? Or lose your home...

    So I've taken a job that is close to home, has next to no responsibility for not much less take home than I would get risking my reputation etc. if I was doing a management job.
    This approach has been taken by a lot of people and has obviously had a major effect within the construction side. Many people that are in the same position as me have done what I have done and stepped away from the high personal risk works. That's why there are so many adverts for site managers... Why do it for £22 an hour when you can get £20 an hour driving a bloody fork truck. Or £50k a year driving a lorry basic plus over time if you want it.

    Well I've been approached by an agency that says they can get me work under CIS rules from a well known top line construction company because they cannot get people with my skills unless they either bump the rates so high that 40% tax will be the norm if you only work two days a week (Which is where I am at weekends basically even now) unless they pay people using the Sole Trader/CIS route. I presume HMRC are ok with this, it means I become a "Sole Trader". Again. I was one before I had to go Ltd all those years ago...

    Does this sound right? Because I'm tempted to go CIS, let them stop 20% at source and deal with the rest myself. And get back into managing some juicy construction projects. Because that's what I love doing.

    Oh. And find an accountant I can actually trust to do the job I'm paying them to do...

    #2
    Alas there are not that many on these boards who are familiar with CIS
    Originally posted by Stevie Wonder Boy
    I can't see any way to do it can you please advise?

    I want my account deleted and all of my information removed, I want to invoke my right to be forgotten.

    Comment


      #3
      Go to Professional Passport, look up any of the umbrella firms that also have CIS accreditation and ask them.

      Seriously I can't see anything wrong in your assumptions but no one on here will understand CIS well enough to advice you.
      merely at clientco for the entertainment

      Comment


        #4
        There is no reason that HMRC will have an issue with you working self-employed under CIS.

        IR35 doesn't apply to self-employment and your earnings are still subject to the same rates of income tax as employed people.

        You'll pay NICs under Class 2 at £3.5 per week and under Class 4 at 9% on profits between £9,568 and £50,270 and at 2% on profits above that upper profits limit.

        You can register a limited company for CIS but the question is whether you'd find clients willing to engage a limited company on an outside IR35 basis.

        Comment


          #5
          Originally posted by Lost It View Post

          Oh. And find an accountant I can actually trust to do the job I'm paying them to do...
          There are probably more accountants who do CIS than who do contracting company LTDs.
          If you're in the construction industry just ask around as there will be plenty of people using CIS.
          See You Next Tuesday

          Comment


            #6
            I did what was suggested, asked around and CIS will work very well for me rather than IR35.

            Comment

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