The CIS Tax and Payment Service for Contractors and Subcontractors
Recent changes in legislation have changed the way many subcontractors are paid in the construction industry. Before, subcontractors would often be paid by a third party contractor payroll company. From 6 April 2014, those companies have to treat the subcontractor as an employee for tax purposes. This means that your net take home pay is significantly less.
Nopalaver Group work with a number of construction companies, operating their payroll where subcontractors are directly paid by the construction company or an associated company. This enables the subcontractor to retain their self-employed status for tax purposes. It only works for those subcontractors that are genuinely self-employed but that is often the case within the construction industry, anyway.
If you want to remain taxed on a self-employed basis but the construction company offering you the work aren't prepared to pay you that way, suggest they call us to discuss how they could, without falling foul of the legislation or running any additional risks.
Make yourself more attractive to construction companies!
It might be worth having your own limited company. This will enable you to work for any construction company as individual's limited companies are not affected by the changes to the legislation. Indeed, many companies insist that subcontractors have their own limited company.
Having your own company does bring some responsibilities but with our help and support, within a very short period of time, people cope very well. In fact, having your own company is more tax efficient than being self-employed. For further information, click here.