New limited company with two directors - not expecting to take any pay or distribution for some time.
All clients expected to be private households therefore CIS as a sub-contractor does not arise.
The two directors have their own self-employment status and will carry out the work for the Ltd company as well as carrying on with their own individual work. The sort of work is general handyman repairs/renewals, plumbing etc. I think the two self-employed people have to register as sub-contractors and the Ltd company therefore does have to register as a contractor. I would appreciate opinion as I cannot get any response from the CIS helpline.
Replies (2)
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Definitely CIS
You are correct.
If the two directors are going to charge the company as self-employed individuals (and that is a whole issue in itself) for general construction work, they are sub-contractors and the company is a contractor under CIS, regardless of whether the work done by the company is outside CIS because it is undertaken for homeowners.
Agree
I agree with Euan, the Ltd company will have to register as a contractor and the directors as sub contractors.
The directors will have to work for at least one other contractor during a certain period or HMRC will view them as employees.