CIS and PAyroll services company

CIS and PAyroll services company

Didn't find your answer?

Maybe this is an obvious question, but I am confused . . . . If a building contractor who usually applies a 20% deduction to all its workers pays a subcontractor through a payroll services company, does it still have to deduct 20% from the payment to that services company?

Thanks

Replies (2)

Please login or register to join the discussion.

By ShirleyM
02nd Apr 2012 14:48

I would have thought so

Unless the payroll services company has gross payment status.

Thanks (0)
Man of Kent
By Kent accountant
02nd Apr 2012 14:53

Yes

As Shirley says they will only be paid the full amount if they have gross CIS status.

Of course if they aren't registered as a subcontractor under CIS you will probably have to deduct 30% - you'll know when you try and verify them with HMRC.

 

Thanks (0)