self-employment question

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Re: self-employment question

Postby DasNutNock on Tue Oct 02, 2018 2:40 pm

Johnny Byrne's Boots wrote:How does his 'employer' deal with the personal allowance and NI?


He pays his own NI as part of his annual return, and as far as I can tell, his boss doesn't have to pay any NI for him under CIS rules.
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Re: self-employment question

Postby DasNutNock on Tue Oct 02, 2018 2:41 pm

somerset-hammer wrote:Is he paying tax, (that he knows of) Dan?


Yeah, his employer has to hand over the 20% he's retained from his payments to HMRC on his behalf. Sort of like PAYE, I guess, but it still doesn't explain why he doesn't get a payslip.
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Re: self-employment question

Postby westhamshares on Wed Oct 03, 2018 10:11 am

people working in the building trade have their own set of rules for "self employment" and unlike most people are considered self employed when on most measures they might not otherwise be

the person/business/company acting as the contractor makes deductions based upon whether the sub contractor is entitled to be paid with or without deductions and at different rates of deductions as determined by HMRC and requires the sub contractor to have registered with HMRC and obtained a UTR Unique Tax Reference number.

in some cases it is possible for a sub contractor to be paid without deductions but most likely the deductions will be at 20% but they can be a higher rate if the contractor is instructed to do so by HMRC.

Each month the contractor should give a certificate to the sub contractor showing the gross payment and the tax deducted.

insist on getting this every month without fail,
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Re: self-employment question

Postby DasNutNock on Wed Oct 03, 2018 10:25 am

Caught up with him yesterday and every rule is being complied with, including the "receipt", which has all the relevant data on it. Just strikes me as bizarre that the business owner (CIS Contractor) gets away without paying NI contribs or a pension for the subbies.
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Re: self-employment question

Postby Hummer_I_mean_Hammer on Wed Oct 03, 2018 12:53 pm

DasNutNock wrote:Caught up with him yesterday and every rule is being complied with, including the "receipt", which has all the relevant data on it. Just strikes me as bizarre that the business owner (CIS Contractor) gets away without paying NI contribs or a pension for the subbies.


Quite commn Dan, the last contract I had was via CIS on my ltd. company. So was deducted 20% @ source and got sent over a voucher showing the deductions.

Also previously, I was working as a sole trader and the same, 20% @ source. Was easier to work out as a sole trader as the ltd. is a company tax, which is always a bit more complicated.
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Re: self-employment question

Postby chelmsfordhammer91 on Thu Oct 11, 2018 2:03 pm

Does this have any relevance to your mate's situation?

https://www.bbc.co.uk/news/business-45822650
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Re: self-employment question

Postby fjthegrey on Thu Oct 11, 2018 5:01 pm

It sounds right to me, as long as he is getting his CIS certificate from them showing his deductions, although his own record keeping of what's been taken will be probably be fine as long as its halfway accurate.

All the CIS gets reported on the tax return at the end of the year and offsets any tax owed. More often than not it results in a refund at the end of the year as well.

It's basically a way to get cash in hand earnings reported, the motivation being there's probably something coming back to you after you've deducted your expenses.
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