CIS or not?

CIS or not?

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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.

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Euan's picture
By Euan MacLennan
07th Jan 2014 16:40

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.

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By rothiequine
07th Jan 2014 17:02

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.

 

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