CIS implications with employee

CIS implications with employee

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I am after some advice regarding a client who is an electrician and has one employee who is a trainee. Currently all the work is private customers so no CIS issues.

They are now planning to do a mix of both types of work and we are not sure how this should work. The client will be registering for CIS but what happens with the employee.  Should the client just apply for gross status and carry on as we have before or is there something else that needs to be done?

Thanks

 

 

Replies (7)

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By Wanderer
20th Aug 2018 13:19

If your client is employing the trainee under PAYE there will be no change in that arrangement.

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By Democratus
20th Aug 2018 14:51

Not sure what your point is. The client registers for CIS and employs the trainee under PAYE.

If Gross Status applies then nothing really changes. Perhaps you were thinking of the PAYE / CIS offset available to Ltd's who, in order to offset, would be Net lower.

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By sbt
20th Aug 2018 15:09

Thanks, my concerns were the fact that client would be effectively being paid 2 peoples income and have a lot of tax deducted.

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Replying to sbt:
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By Cheshire
20th Aug 2018 15:17

But does your client pay tax on his income?

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Replying to Cheshire:
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By sbt
20th Aug 2018 15:34

yes. but the CIS tax if going to be based on the total income which would be including the employees hours. Which is the part Im trying to check to see if its the right way to do it.

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Replying to sbt:
By Tim Vane
20th Aug 2018 23:02

I am just wondering why your client doesn’t install gas boilers. Or is there some rule that stops him from just having a crack at it?

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Replying to sbt:
By Democratus
21st Aug 2018 09:30

Any reason to believe that they won't qualify for Gross Status?

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