Managed Payroll Services

Experts in Payroll & Accounting Services


Payroll Management

Managed Payroll

CRITICAL COMPREHENSIVE AFFORDABLE

As a business grows, the payroll function can become time consuming and stressful.

Our HMRC compliant payroll experts can take the stress and time out of this, saving you and your company money.

Just tell us the rates of pay and the hours worked and we'll do the rest.

Frequently Asked Questions About Managed Payroll


How does the CIS Scheme work?

The Construction Industry Scheme (CIS) gets contractors to deduct money from the subcontractor’s payments to give to HMRC, this rate is usually around 20% and will be used as advanced payments for the sub-contractor’s tax and national insurance.

All contractors must be registered for the CIS scheme.

How to apply for a CIS card?

To register with the Construction Industry Scheme, you need to contact the CIS helpline on 0300 200 3210.

You will need you Unique Tax Reference Number (UTR) and have already registered as self-employed.

How long does it take for my refund to come through?

Everything gets put through electronically so you can get your refund as quickly as possible.

Even though we do this, HMRC can refund the payments and different times.

We have a system that will provide oversight for CIS refund and will chase up HMRC to make sure that they pay you back.

In our experience you will receive you CIS refund no earlier than 7 days and no later than 6 weeks.

Do you take a percentage of the refund as part of the fees?

We do not take a percentage of your CIS refund. We prefer to operate on a flat fee of £19.50 a month as opposed to a percentage.

This fee covers all of the work we do for you and also our representation of you in the event of an inquiry.

What expenses can I claim for on my CIS Refund?

There are many things that you can claim your money back for, these are wide and varied. Most costs incurred whilst doing your work are re-claimable on your taxes.

Many expenses that can be claimed are not often thought of, but we are here to help. We work hard to make sure you get the full refund you deserve.

My records are incomplete, can I claim for my expenses?

We often have sub-contractors come to us with this issue.

As professional accountants we have other ways in which we can calculate your income and expenses. We will use these to make sure you get your full refund from the CIS taxes you have paid.

Your individual accountant can then work with you to help the record keeping, making sure it doesn’t present you problems in future.

Is CIS deductable from mileage?

Unfortunately, you cannot deduct your mileage from the taxes as you are self-employed and registered for CIS.

When dealing with a contractor as a sub-contractor in your daily rate you should be charging for your travel costs and insurances.

How do I claim my CIS back?

You can contact us, and we’ll do it for you.

When you have paid CIS deductions these should be claimed through your company or business payroll scheme. Do not try to make a claim against your Corporation Tax return because it is likely you will receive a fine.

Monthly Full Payment Submissions (FPS) get sent to HMRC as usual. An Employer Payment Summary (EPS) should also be sent to your employer.

How much of CIS is tax deductable?

Most ‘labour only’ sub-contractors will have tax deducted at a flat rate of 20%.

This can only happen if HMRC know your UTR on the list of CIS subcontractors.

However, this can rise to 30% as a penalty for not doing your CIS returns on time or correctly.

How long does it take to become CIS registered?

This all depends on whether you are already employed.

First you must register as self-employed, if this has already been done then your CIS registration can be done as quickly as in a few days.

However, if you are not yet registered to be self-employed registration with CIS can take up to 6 weeks.

Who pays CIS?

Contractors must deduct money from their subcontractor’s payments to pay HMRC under the Construction Industry Scheme (CIS).

These CIS deductions are advance payments towards the subcontractors National Insurance and tax. This is to ensure that sub-contractors are up to date with their taxes.

However often the subcontractors will have overpaid their taxes for the year and we can help to get a rebate for them.

Should I register for CIS?

If you are a contractor, you must be registered for CIS before you take on your first sub-contractor.

Sometimes they should not be a subcontractor but an employee instead and you must also check this, if they are a subcontractor instead of an employee then you will most likely incur a fine. You must also check that your subcontractors are registered for CIS with HMRC.

If you are a subcontractor you must register for CIS before you begin work or you will incur a penalty, and your tax rate will rise. Usual from 20% to 30%.

What is the difference between PAYE and CIS?

For subcontractors, under the construction industry scheme you will pay a fixed amount of 20% which will cover you National Insurance and income tax.

Many subcontractors are then entitled to a refund under this scheme as it does not consider your expenses.

Under the Pay as You Earn (PAYE) Scheme, as an employee, then you pay the ‘correct’ amount of tax. Any refund will be given through your wages.

Is CIS scheme compulsory?

With a number of similarities to PAYE, the Construction Industry Scheme (CIS) is a mandatory withholding tax where either 20% or 30% is deducted from a self-employed construction subcontractor's payments and paid directly to HM Revenue and Customs on their behalf.