Construction industry scheme (CIS)

hln12

Hi all,
My husband is self-employed, but on the CIS scheme. We were under the impression that he would be included in the self-employed grant scheme, but after reading an article on the unite website are now unsure. They have stated that CIS members would not be covered by the grant scheme offered by the government. 
Does anyone have any information on this?
Thanks in advance for your help.

whizzywoo

Can you quote where you read this information?
I am under the impression that sub-contractors on the CIS scheme are self employed.

Jeremy535897

On a quick glance, I didn't see anything on their website, but I am not a member. They clearly have self employed members, as they claim to have been lobbying the Chancellor to introduce the self employed grant.

hln12

Apologies. My husband saw this on the unite website - my mistake!
As far as we were aware he is self employed and does put tax returns in each year. The only difference is is that the contractors he completes work for subtract the 20% tax from his invoice payments before paying him and send to hmrc. I am unable to include a link to the website. It is titled "Government must extend wage assistance to help construction's million plus bogus self-employed".
Thanks in advance for your help.

whizzywoo

Your husband IS self employed.  As he has completed self assessment tax returns each year, HMRC will use an average of his trading income on these to calculate the amount he gets.

They will be getting in touch with your husband at some stage to invite him to apply.  However there won't be any money up front until some time in June.  It will take them this long to set it up.

Beware of scammers contacting you about this.  Make sure it is HMRC.  Presumably self employed will have to log into there Gov.com tax account to complete the application.

The 20% tax deducted by the main Contractors is treated as a payment on account for the income tax that he will be due to pay each year.  It does not mean that he is an employee.

Jeremy535897

whizzywoo said:

Your husband IS self employed.  As he has completed self assessment tax returns each year, HMRC will use an average of his trading income on these to calculate the amount he gets.

They will be getting in touch with your husband at some stage to invite him to apply.  However there won't be any money up front until some time in June.  It will take them this long to set it up.

Beware of scammers contacting you about this.  Make sure it is HMRC.  Presumably self employed will have to log into there Gov.com tax account to complete the application.

The 20% tax deducted by the main Contractors is treated as a payment on account for the income tax that he will be due to pay each year.  It does not mean that he is an employee.

Yes, the article in question is a political one, claiming that most sub-contractors are really employees. It would of course be in the union's interest to have all sub-contractors treated as employees. It is irrelevant to the issue of the SEISS/furloughing. Your husband is indeed self employed for these purposes. The fact that your husband is in the CIS means that he is not an employee, unless HMRC decide to pick apart his individual case and argue he really is an employee. In the real world this does not happen very often.
Gov.co.uk not Gov.com.