IF YOU ARE SELF EMPLOYED AND WORK IN CONSTRUCTION THEN YOU HAVE THE OPTION TO MAXIMISE YOUR TAKE HOME PAY AND ENJOY GREATER FINANCIAL FLEXIBILITY
The CIS solution could be the best option if you:
- work in the construction industry and are genuinely self-employed
- are registered self-employed and have a verified UTR number [Unique Tax Reference]
If you are a skilled tradesman who is registered self-employed, there is a downside in that you will relinquish your right to such things as holiday pay and sick pay, which as an employee being paid PAYE would be a statutory right.
On the upside, those self-employed currently pay a lower class of National Insurance and have the option of offsetting expenses such as travel and equipment in their year end tax return.
New legislation requires agencies and end clients to be extra diligent in determining if a role fits within the scheme. This means that they check whether the individual doing the works will fall under the end hirer’s supervision, direction or control. If so, the individual cannot be paid CIS, and must be processed via PAYE [Pay As you Earn] This means that on occasion CIS self-employed workers may move from CIS on one job to PAYE on another.
Take-home pay illustrations should not differ between umbrella companies
The team at Umbrella.co.uk have tools that enable them to give an estimated take-home pay. They can consider your personal circumstances such as tax code, student loans, pension or salary sacrifice, etc. These estimates can be really helpful when comparing contract roles against permanent roles, or inside IR35 roles against outside IR35 roles.
There are many umbrella companies in the marketplace. All should be using the same compliant tax system, and therefore your estimated take-home pay should not differ. The only difference should be the margin they take.
Very helpful, and explained very well and supportive, made easier to understand. Good with dealing and supporting, and put it basic terms. Ashraf July 2021
Excellent service with no problems ever trying to contact someone. All queries dealt with in a timely manner. Would recommend.M Maber September 2019
I have always found your service fantastic/helpful and understanding.John C April 2014
Clear and explicit support, easy to use online portal, and punctuality when it comes to salary. Will surely recommend your services, and use them again if I get the opportunity.Jeremy C March 2014
Excellent. Plenty of information and backup. Staff always very polite, friendly and helpful. It was also useful to have an Account Manager and named contacts so that when we called or e-mailed we could speak to someone who was aware of our account. We would not hesitate to recommend Umbrella.co.uk.Philip S April 2014