The Construction Industry Scheme (CIS) is a payroll solution designed for self-employed contractors who work on-site and are hands-on in the construction sector. Trades such as plumbers, carpenters, and bricklayers may be eligible for the scheme.
We can check that you qualify for CIS by checking your UTR number and we can also carry out a comprehensive check of your status under SDC regulations.
Under CIS, you will be self-employed and as such we will not pay your National Insurance contributions. You will also have to complete a personal tax return under the self-assessment system in order to claim credit for the tax deducted under CIS and calculate whether you have any further tax to pay or are due a tax refund. As an established accountancy practice, our sister company, Meades Contractors, can do this for you.
For assistance, there is a dedicated helpline available—contact HMRC directly at 0300 200 3210.
If you work in the construction industry and you are genuinely self-employed
AND
You are registered as self-employed and have a UTR number that we can verify
Then Meades CIS might be the most suitable option for you.
However, if you’re a skilled tradesperson registered as self-employed, you’ll forgo certain employee benefits like holiday pay and sick pay, which are statutory rights under PAYE. However self-employed individuals typically pay a lower class of National Insurance and can offset expenses such as travel and equipment in their year-end tax return.
Legislation mandates that agencies and end clients carefully assess whether a role qualifies for the CIS scheme. They must determine if the worker falls under the end hirer’s supervision, direction, or control, often referred to as SDC. If so, the worker cannot be paid through CIS and must be processed via PAYE. As a result, self-employed workers may occasionally switch from CIS on one job to PAYE on another.
Take-home pay estimates shouldn’t vary significantly between umbrella companies.
We can provide you with an estimate of your take-home pay, factoring in personal circumstances like tax code, student loans, pensions, or salary sacrifice. These estimates can be helpful when comparing contract roles with permanent roles or evaluating roles inside IR35 against those outside IR35.
Although there are many umbrella companies available, all should operate under the same compliant tax system, meaning your estimated take-home pay should not differ. The only variation should be in the margin they charge.
