What is CIS?
The Construction Industry Scheme (CIS) is a Scheme introduced by HM Revenue & Customs to enable construction workers to be self-employed. On registering with HMRC for CIS, you will be given a Unique Tax Reference Number (UTR) which each contractor will need to verify your tax status. The tax status is determined by HMRC and will be one of 3 levels, Gross, 20% or 30% taxation.
MMC Management is a commercial contractor. We sub-contract you and your services out to recruitment agencies and clients. MMC then charges the agency or client a fee for the services that you have provided, out of this fee we then deduct a competitive margin from the contract.
On a weekly basis MMC Management pays its sub-contractors for the services they have provided, all CIS deductions are taken at source, therefore what your receive in your bank account is yours to spend!
As a self-employed contractor any expenses that you incur in the course of providing your services, you can claim for at the end of the financial year by completing a tax return. If you are unsure about how to do this, let us know and we will put you in touch with an accountant.
Why use a commercial contractor?
Most agencies are unwilling to contract directly with self-employed sub-contractors, therefore contracting through a commercial contractor like MMC Management gives you the opportunity to take agency work whilst keeping your self-employed status.
How does MMC Management help?
MMC Management liaises with the agency and invoices them for the work that you have done. On a weekly basis we then release a payment to you after deducting the CIS tax contributions at a level advised by HMRC at the time of verification.
On a weekly and monthly basis MMC Management will send you a payment advice for your records to make completing your tax return easier.
As a self-employed sub-contractor you are in charge of making your own National Insurance contributions, in order to set up a direct debit call HMRC on 0845 366 7899.