Client has just advised me he has taken someone on and they need to be paid by tomorrow.
new person is a sub contractor - not set up for SA yet.
client is not registered for CIS as a contractor.
As I see it, only way round is for new person to be paid salary, until client has registered as a contractor
Are there any other options?
Replies (3)
Please login or register to join the discussion.
I assume
your client is in the construction industry.
If not there seems to be no need cor CIS scheme.
If this is construction industry the supplier will just have to wait for his money until your client has fulfilled his responsibilities and registered for CIS.
You can register as a contractor over the phone and be set up within a couple of minutes of the call. The next problem you will have is that your client will need to deduct 30% not 20% as the subbie is not registered with HMRC. Once the subbie is registered with HMRC you can reduce the deduction to 20%.
Realistic approach
Get a scheme app done today and get the subbie paid asap, 70% as a safeguard in case the UTR can't be verified when the time comes. Hardly the subbie's fault the contractor has messed up.