Construction Industry Scheme (CIS) changes - how to avoid them

[Up Yours Darling]

I found this forum whilst googling about the changes to the Construction Industry Scheme that I've heard about.

BTW, am I the only subbie here?

Anyway, I've heard about changes and how we're going to have to prove we're in business of our own account. I've also read on here that IT contractors have gone through this before (is it the same Pistachio?)

If so, how do you get around it? I presume most of the plans will be the same, so how have you guys ducked and dodged it?

[Howzat]

Yeah, it's pretty straightforward really...

The proposals are that to be classified as self employed the workers should meet one or more of three criteria:

1. The worker must provide plant and equipment, not just the tools of his trade.

2. The worker must provide all materials.

3. The worker must employ other workers. He will be responsible for ensuring the correct criteria are met for his workers.

Read into that what you will but from what I've heard it WILL happen so you need to get your sh1t together pretty soon.

H

[Up Yours Darling]

I've read that, but I'm sure they'll find ways of trying to make us all pay more tax.

What I'm saying is *nudge nudge wink wink* what's the best way of sidestepping the plans? You guys must have experience!

[Malvolio]

Lots. Thing is, we are subject to different tests. However, supplying some plant and subbies and sourcing your own material would appear to be one way.

You might find this Press Release from 2007 interesting. Shame it attracted about 6 applicants; had there been a few more we might havebeen able to do something...

[Pistachio]

Originally Posted by Up Yours Darling

(is it the same Pistachio?)

Yes, it was me, and I couldn't help but post it for the exact reason that most construction people seem oblivious or are in denial to the changes ahead.

[Greasy Chip Butty]

Originally Posted by Up Yours Darling

*nudge nudge wink wink*

Are you that berk that bodged my conservatory?

[Pistachio]

Before you look at getting around it, maybe you should understand the current proposals better, and also read up on how IR35 has affected contractors?

[uptonaccountants.com]

We've a few construction people on the books and trying to explain this to them is a nightmare, similar to the scenarios you're seeing on the forum link above.

The IR will see this as "easy meat" for them as joe bloggs bricky isn't going to be ready for this in time. Trying to explain IR35, companies, etc is pretty tricky as it's of no interest to them......suspect this will be an area of growth for the umbrellas over the next few years, easier to operate through a brolly than have their own ltd company.

[Up Yours Darling]

Originally Posted by uptonaccountants.com

We've a few construction people on the books and trying to explain this to them is a nightmare, similar to the scenarios you're seeing on the forum link above.

The IR will see this as "easy meat" for them as joe bloggs bricky isn't going to be ready for this in time. Trying to explain IR35, companies, etc is pretty tricky as it's of no interest to them......suspect this will be an area of growth for the umbrellas over the next few years, easier to operate through a brolly than have their own ltd company.

Hm, cheers for that.... so looks like it will affect a lot of us. How much is it likely to cost if we were to use an accountant or umbrella company?

Might have to cut back on the holiday plans!

[Rob Crossland]

Originally Posted by Up Yours Darling

Hm, cheers for that.... so looks like it will affect a lot of us. How much is it likely to cost if we were to use an accountant or umbrella company?

Might have to cut back on the holiday plans!

Accountancy fees range from circa £60 to £100 per month depending on whether you are after specialist advice (recommended) or basic services. Some will offer free co set up and may or may not charge for extras such as self assessment.

Umbrella - fees deducted are from £25 to £30 per week.