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IR35 & CIS Tax

If a contractor is deemed employed and inside IR35 - we dont then deduct CIS from their invoice?

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I have a client that has been deemed to be a disguised employee by his engager and therefore inside IR35 and tax and Ni will be deducted at source. We are ok with their assessment but, they are trying to deduct CIS from his invoices also!?! It was my understanding that it was one or the other, not both or is my logic incorrect?

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By Matrix
19th Aug 2019 15:56

Is this a public sector or private sector contract? If private sector then the IR35 analysis is done by your client not the end client, the off payroll rules don’t come in until April 2020.

No idea about the CIS, is the limited company providing construction services? I would have thought the deduction of CIS contradicts the disguised employee analysis.

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By jimeth
27th Aug 2019 09:12

If within IR35 then this automatically means that CIS does not apply. You are correct in thinking that it can be one or other but never both.

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