Self employed questions

Rocco1963

Hi everyone

I'm hoping someone may be able to point me in the right direction, please, I know nothing about being self-employed or CIS or Tax in general etc etc. So please excuse my ignorance.

My son has recently finished working for a local building firm, he was employed as a Self-employed labourer, and he was paid by his boss, but his wages were docked 20% by the employers accountant before my son saw any money, and he would do his self assessment form every year; I presume this is a thing in the self-employed world, something to do with CIS ?.

Anyway, he's just started another job with a tree surgeon self-employed but he's not sure that it's going to be the same situation, where he has his tax is "pre-paid" as it were.

If the situation isn't the same, could anyone point me in the right direction please as to what he needs to do, as he really doesn't want to fall foul of the tax office and end up paying a load of fines etc etc.

As I say, I know nothing about all of this having never been self-employed and any advice would be very much appreciated.

Many thanks for looking

mybestattempt

https://forums.moneysavingexpert.com/discussion/6680269/self-employed-questions

This may help:

https://www.litrg.org.uk/working/self-employment/construction-industry-scheme-cis

UKTaxHelper

Tree work usually sits outside CIS, unless he's clearing a site for a building job. So he'll probably be paid gross this time and needs to put money aside himself, 25 to 30% is the usual rule of thumb. Nothing else changes though, he's still self employed and still files the same return. CIS was never a separate tax, just tax taken off up front.

EnPointe

https://forums.moneysavingexpert.com/discussion/6680269/self-employed-questions

CIS was a response to widespread fraud anfd tax evasion in the building industry it allowed Self Employment to remain a standard way of working rather than lots of short PAYE contracts