CIS Service: FAQ's
Frequently asked questions about CIS Service
- Is the CIS service right for me?
- What is the Construction Industry Scheme (CIS)?
- How do I register on the CIS?
- What jobs fall under the CIS?
- Do I have to register with the CIS if I use the Danbro umbrella?
- What are the main benefits of operating as self-employed under the CIS?
- Working through an agency or end client
- How does the CIS service work?
- How quickly am I paid?
- How much is the CIS service?
- What National Insurance Contributions do I have to pay?
- Why do I have to do a self assessment tax return at the end of the year?
- Can Danbro help me with my self assessment?
- Should I keep a track of all my expenses?
- Can I claim for materials?
- Can I work with Danbro on other contracts?
- Do you administer my holiday pay?
- Do I receive any advice on health and safety guidance?
- Can I claim any expenses?
1. Is the CIS service right for me?
When you join Danbro we will verify your self-employed status to ensure you are eligible to work under the CIS solution. Our self-employed assessment (SEA) is an important part of the registration process and you will have to answer some questions to ensure our CIS solution is right for you.
We also provide PAYE umbrella and limited company services. Your individual circumstances determines which service is right for you.
2. What is the Construction Industry Scheme (CIS)?
The CIS scheme governs the way construction contractors receive their payments.
3. How do I register on the CIS?
Before you register for the CIS, you must register as self-employed.
If you have not yet registered as self-employed, call the self-employed helpline
on 0845 915 4515.
To register as self-employed you will need:
- Your National Insurance number
- The date your self-employment started
- The nature of your business and your business address
You will be given a unique tax reference (UTR) number which you will need when registering for the CIS scheme and also for our service.
The next step is to actually register for the CIS. To register for the CIS please call
0845 366 7899.
To register you will need:
- Your UTR number
- The name of your business
4. What jobs fall under the CIS?
Some examples of the types of construction work that are covered by the scheme include jobs like:
- Site preparation
- General construction i.e. bricklaying, roofing, plastering etc
- Alterations and extensions
- Repairs and refurbishment
- Decorating
- Dismantling work
- Demolition
(HMRC, 2009)
5. Do I have to register with the CIS if I use the Danbro umbrella?
No. Under the umbrella company you are effectively an employee of Danbro and thus are subject to PAYE and NICs on your income. You have no obligations relating to the CIS.
6. What are the main benefits of operating as self-employed under the CIS?
As a self-employed individual, you are not subject to Employers National Insurance at 13.8% which saves you a considerable amount of money.
7. Working through an agency or end client
We’re happy to deal with both. Danbro alleviate the burden from agencies and end clients by managing CIS deductions and payments on their behalf. We want to ensure that both you and your agency/client receive minimal administration and total peace of mind.
8. How does the CIS service work?
Danbro is registered as a contractor under the CIS. We would effectively sub contract your skills to your agency or client and then invoice them for the work done. Once we receive the monies from them, we would make the CIS deduction and send the remaining net amount directly to your bank account. You can keep up-to-date with payments and deductions through the statement of payment you will receive after each payment is made.
As soon as we receive monies from your agency/client, we process your payment. We have three methods of sending monies;
- BACS - Takes 2-3 working days for monies to enter your account
- Faster Pay - Same day payment (additional £5 charge). Some banks do not accept Faster Pay, however you can check by clicking here
- CHAPS - Same day payment (additional £20 charge)
10. How much is the CIS service?
Our fee is just £15 per week.
11. What National Insurance Contributions do I have to pay?
As a self-employed individual, you are required to pay the following National Insurance Contributions;
Class 2: £2.40pw, which can be paid by direct debit to HMRC each week
Class 4: 8% of the net profit at the end of a tax year
As a self-employed individual, this is something you must arrange yourself.
Please call the DWP contributions office on 0191 213 5000 where you can arrange for your contributions to be paid via direct debit.
12. Why do I have to do a self assessment tax return at the end of the year?
Self Assessment involves completing an online or paper tax return in order to advise HMRC about your income, or to claim tax allowances or reliefs against your tax bill. HMRC use the figures on the tax return to work out your tax bill. Thus, there is the possibility that you may be required to pay more tax, but on the flip side you may get a tax rebate.
13. Can Danbro help me with my self assessment?
Yes. We would be more than happy to help you with your self assessment for a small fee starting from £120.00.
14. Should I keep a track of all my expenses?
Yes. You can claim tax relief on business related expenses you have incurred throughout the year; however, you will need to provide evidence of these, hence the importance of keeping any receipts or documentation where possible.
15. Can I claim for materials?
Yes. When you purchase building materials to complete your work, you can send your receipts to us. Your material costs can be used to lower the amount of pay subject to the CIS tax deduction.
NB: Materials & expenses are different. Materials are the core things you need to complete your work, whereas expenses are the secondary costs you incur whilst carrying out your work.
16. Can I work with Danbro on other contracts?
Yes you can. You simply have to notify us that you have found another contract.
17. Do you administer my holiday pay?
No. You’re a self-employed individual and not an employee so we do not administer your holiday pay.
18. Do I receive any advice on health and safety guidance?
Yes - as a client of Danbro, you are provided with a health and safety guide and can also contact our health and safety specialists on 0800 731 3178 for extra advice and guidance.
You can only claim your expenses at the end of the tax year through completing a self- assessment form. Ensure you keep hold of any business receipts (e.g. travel, tools & accommodation expenses).