Re: UTR number

Lizzie50

My son has recently started back with a company he has worked for previously. he has always been classed as employed and has tax and NI deducted in the normal way. The company are currently taking 30% from his wage and have asked for a UTR number. When they took him back on, they never told him he would be self employed and can they take 30% off him if he is being treated as self employed. Very confused

ceh209

Does he work in construction?

This sounds very much like the CIS (google it), he is self employed but they have to withhold tax at source. A UTR will be issued to anyone who has to complete self-assessment (which he will because he is self employed).

I don't know much more than that about CIS, but I'm sure some people will. In the meantime he should be keeping receipts for everything he pays for in connection with work, and keeping all the payslips he is given which show the tax being deducted.

cavework

Your son needs to register with HMRC as self employed if he wants to work in this capacity.
If your son is supplying materials his invoice should show this seperately from labour costs as materials are not subject to CIS. This may reduce his CIS deduction to 20%.
His rate should reflect the fact that he is no longer entitled to Holiday or sickness pay but is a self employed sub contractor . In effect he is running his own business and he should look for other customers.
If they have just taken him back on at the same hourly rate they are ripping him off.