CIS Payroll ?

Newbiesw

Since I have officially become one of the great redundant statistics as of today, I have long been out of touch of the market and looking at the Payroll vacancies noticing quite a few mention "must have CIS experience!".
Can any-one enlighten me as to what is so different between and ordinary payroll and CIS ?

Thanks in advance........

Newbiesw

SueC_2

Construction Industry Scheme.

Loads of weirdy tax rules unlike anything else I have ever experienced in any other industry. In my opinion, if you don't know it, there's no way you'll be able to blag it.

http://www.hmrc.gov.uk/cis/

Newbiesw

Hello SueC,

I didn't intend blagging it (I always think blaggers will eventually get caught out !) and many thanks for the link. I started to read it and certainly see what you mean about the weirdy rules !!!!
10.00 pm at night after a long, hot week at work isn't a good time to start taking it in but I shall certainly have another look to see if it's worth taking up......or cop out and stick to the standard PAYE vacancies (as if they don't have enough weirdy rules of their own?)

Newbiesw

SueC_2

Good luck! And if you ever get to understand it fully, you're a better man than I, or anyone I've come across!

villabadger

Newbiesw wrote: »

Since I have officially become one of the great redundant statistics as of today, I have long been out of touch of the market and looking at the Payroll vacancies noticing quite a few mention "must have CIS experience!".
Can any-one enlighten me as to what is so different between and ordinary payroll and CIS ?

Thanks in advance........

Newbiesw

I don't see why you shouldn't apply for these positions if you have accounts experience. I am not an accounts person but do own a company that works within the construction industry. The scheme is basically used as a method of stopping a standard amount of tax (usually 20%) from the labour element of any invoice. So, as an example......if I invoice a main contractor for £10,000.00 of labour then I would expect payment from them of £8,000.00. Equally, I stop the same %age of any sub-contractor wages - unless they are not registered for CIS in which case 30% is stopped. There are other rules such as applying for 'Gross' status which means that no tax is stopped.

To my mind, the scheme is no more than a means of forcing companies and sub-contractors to put aside 20% of their earnings until the accounts are completed at the end of the tax year - instead of putting it in a savings account, hmrc look after it for you. Subbies like this scheme as they usually get a decent tax rebate once they have offset their business expenses.;)

Newbiesw

villabadger wrote: »

I don't see why you shouldn't apply for these positions if you have accounts experience. I am not an accounts person but do own a company that works within the construction industry. The scheme is basically used as a method of stopping a standard amount of tax (usually 20%) from the labour element of any invoice. So, as an example......if I invoice a main contractor for £10,000.00 of labour then I would expect payment from them of £8,000.00. Equally, I stop the same %age of any sub-contractor wages - unless they are not registered for CIS in which case 30% is stopped. There are other rules such as applying for 'Gross' status which means that no tax is stopped.

To my mind, the scheme is no more than a means of forcing companies and sub-contractors to put aside 20% of their earnings until the accounts are completed at the end of the tax year - instead of putting it in a savings account, hmrc look after it for you. Subbies like this scheme as they usually get a decent tax rebate once they have offset their business expenses.;)

Many thanks for the additional info Villabadger.
Although I'm sure there's a lot more to it than that, a very helpful summarising of the process.
I'm guessing it couldn't be THAT different, just a matter of picking up the different rules and rates etc. which we already have to do anyway with PAYE whenever they start changing the codes, tax bands etc.
I had already picked up on the "Gross status" from SueC's link but what with currently taking a Sage Payroll course (I've never used it!), possibly learning CIS, then there's always the Irish payroll :idea:....I'm gonna be all burnt out before I even start.
I'll continue to keep an eye on the vacancies and if there also continues to be a high percentage of "CIS experience" required, it's certainly worth my considering looking into it.

Many thanks both....

Newbiesw

villabadger

No problem. It isn't much more complicated than that - it can't be otherwise us non-accountant types wouldn't be able to manage it!

There are 3 rates - 0%, 20% and 30% and when you call to check a registration status of a particular business or individual hmrc tell you which rate applies. You stop tax at the applicable rate and pay it to hmrc every month - similar to paye monthly statements.

Simples:D

Newbiesw

villabadger wrote: »

No problem. It isn't much more complicated than that - it can't be otherwise us non-accountant types wouldn't be able to manage it!

There are 3 rates - 0%, 20% and 30% and when you call to check a registration status of a particular business or individual hmrc tell you which rate applies. You stop tax at the applicable rate and pay it to hmrc every month - similar to paye monthly statements.

Simples:D

Simples indeed !
If it's that easy I can continue Sage Training with my right-hand and CIS with my left !

(I WILL certainly look into this)

Nice one VB !

Newbiesw