The end of cis?

[guest119]

Has anybody else been told by their umbrella company that they wont be paid CIS after the end of the month and must go on the books?
Looks like we are in for a humping re the employers NI, well they aint going to pay it so I guess we will?
Anybody?

Boydy

 

[trev]

HMRC estimate that they are owed £30 billion + by big companies and wealthy individuals who stash their money overseas illegally.
Yet the government does nothing but gives millionaires a £40 grand a year tax cut
People like us bend the rules for maybe £40 or 50 a week and we get screwed over.
Yet the government would like us to believe they're on the side of hard working families.

 

[Engineer54]

HMRC estimate that they are owed £30 billion + by big companies and wealthy individuals who stash their money overseas illegally.
Yet the government does nothing but gives millionaires a £40 grand a year tax cut
People like us bend the rules for maybe £40 or 50 a week and we get screwed over.
Yet the government would like us to believe they're on the side of hard working families.

Ah, but these are the same individuals and companies that pay for the Government's election funds etc. They don't support the government for nothing, they want to see a return on those donations, ... Whoops sorry, i meant investments!! lol!!

 

[derek]

The agency told me I would have to go PAYE, I told them i was going to set up a Ltd co. so they left me on CIS for the time being. I just need to do a bit more research into IR35 before setting up a Ltd company but it would mean I could invoice the agency for my services missing out the payment companies charges of around £20 per week (£1000 per year almost) . If I had to go PAYE not only would I pay more tax (via the Employers 13.8% NI and the additional 3% employee NI) for no additional benefit to me but doing overtime would almost become pointless as I'd pay tax on pretty much half of it. Don't forget you pay NI on all earnings above £153 per week after your expenses have been deducted.

 

[Octopus]

The agency told me I would have to go PAYE, I told them i was going to set up a Ltd co. so they left me on CIS for the time being. I just need to do a bit more research into IR35 before setting up a Ltd company but it would mean I could invoice the agency for my services missing out the payment companies charges of around £20 per week (£1000 per year almost) . If I had to go PAYE not only would I pay more tax (via the Employers 13.8% NI and the additional 3% employee NI) for no additional benefit to me but doing overtime would almost become pointless as I'd pay tax on pretty much half of it. Don't forget you pay NI on all earnings above £153 per week after your expenses have been deducted.

I think this is incorrect. There is an upper limit per week - last year it was about £800

 

[wozz]

HMRC estimate that they are owed £30 billion + by big companies and wealthy individuals who stash their money overseas illegally.
Yet the government does nothing but gives millionaires a £40 grand a year tax cut
People like us bend the rules for maybe £40 or 50 a week and we get screwed over.
Yet the government would like us to believe they're on the side of hard working families.

there are a fair few wealthy individuals who have been called out by the government and changed their ways, same can be said with some larger companies, although that is a fruitless task in the end, rich people can employ people with mOre brains than the ones from hmrc chasing them, push them and they go elsewhere, doesn't have much to do with a particular party.

as for doing nothing, has your personal allowance not been raised like everyone else's?

But it that is not what the thread is about, the cis scheme seems to have been in jeopardy for so many years and it just rumbles on, I would be surprised if it really did stop!

 

[imago]

They could get rid of CIS altogether for me, it's a right pain in the 4rse!

As for NI, there's a credit of £2k pa available, so you only end up paying a very small amount. I just follow the advice of my accountant as that's what I pay him for and it's his job to work out the best way of doing things. Which for me is a Ltd Co, minimum wage on PAYE and dividends

 

[wozz]

I never found it too hard to be honest when taking it from people accountants didnt charge much at all to do the monthly return, and when i had it take from me it just reduced my tax bill at the end of the year looked at it like a savings scheme. the helpline when i did need it was as helpful as a chocolate tea pot but thats the HMRC in general.

Is this just a ploy by the umbrella companies to suit them?

 

[derek]

I think this is incorrect. There is an upper limit per week - last year it was about £800

Unfortunately you still pay 2% NI plus I believe the employer's rate at 13.8% has no upper limit. Combined with a 40% tax rate that is potentially quite a chunk from your earnings.

 

[Hawkmoon]

The agency told me I would have to go PAYE, I told them i was going to set up a Ltd co. so they left me on CIS for the time being. I just need to do a bit more research into IR35 before setting up a Ltd company but it would mean I could invoice the agency for my services missing out the payment companies charges of around £20 per week (£1000 per year almost) . If I had to go PAYE not only would I pay more tax (via the Employers 13.8% NI and the additional 3% employee NI) for no additional benefit to me but doing overtime would almost become pointless as I'd pay tax on pretty much half of it. Don't forget you pay NI on all earnings above £153 per week after your expenses have been deducted.

I think even as a LTD company you will still be subject to CIS deductions so may also still be liable for the payment company's admin charges.

As a director max you can earn per month without tax & ni deductions is £641 - further drawings are dividends.


In my opinion your accountant would be the best source for advice for all this rather than researching yourself.