With a dedicated team of Construction Industry Scheme experts that provide a consistently high level of customer service, we have been processing CIS sub-contractor payments for many years, and are fully compliant with the new CIS scheme launched in 2007. We process CIS payments for thousands of self-employed subcontractors, with each new starter verified and taxed according to their status, standard, gross or higher rate.
A market leader in payroll and funding services to the construction and recruitment industries, we'll pay your CIS deductions to HMRC and send you statements of the deduction made on a monthly basis.
For more information about our Construction Industry Schemes, call 0845 226 1843 or email our Contractors team.
The CIS process
Our registration process for self-employed Construction Industry Scheme contractors working through recruitment agencies is a simple one. Just email our Contractor team to start the registration process.
We also offer a quick self-employment test (OSET) that helps you check your employment status.
For each week that you work we collect your approved timesheet, and pay rates direct from your agency. We process your payment according to your CIS tax status, making payment direct to your bank account on the Friday following your working week. For example, for a timesheet that ends Friday 5th, the payment will be made on Friday 12th.
As a self-employed individual you will be responsible for your National Insurance Contributions; when you sign up for self-employment you'll be asked to pay NI by direct debit - the easiest way to ensure you're up-to-date with contributions and eligible for NI benefits.
You will be sent a pay advice each time we process a payment and we will send a monthly summary at the end of each tax month in accordance with the rules of the CIS scheme.
About CIS expenses
Under the rules of the CIS scheme you cannot claim relief for business expenses until you complete your self assessment at the end of the tax year. We're on hand to give you all the guidance you need on allowable business expenses, and have a specialist team that can help you complete your tax return.
CIS Insurances
As a self-employed worker you are required by law to have public liability cover as well as employer's liability cover whilst you are working. We have negotiated competitive rates with providers, enabling us to offer subcontractors this insurance cover within the UK; in addition, we've included a personal accident policy to cover you whilst you're working. These insurance covers cost £3 for every week that you are working.
The main limits of the cover are:
- Employer's Liability: £10,000,000
- Public Liability: £2,000,000
- Products Liability: £2,000,000
- Personal Accident: £200 per week for up to 52 weeks if an accident at work prevents you from working
- (there is a 2 week deferment period)
- Loss of limbs or eye or total hearing or death whilst working: £50,000
Eligibility to work in the UK
Subcontractors are legally required to prove that they are eligible to work in the UK. All new contractors will need to provide their passport, or certified copy of their passport, as proof of identity.
If you are unable to provide a passport, please contact our payroll department on 0845 226 1843 to discuss which alternative documentation required.
FAQs
Do I need to register as self employed for the CIS?
All Construction Industry Scheme workers must be self employed. To test this you should complete the Oriel Self Employment Test (OSET). Once you have completed this, if self employed, you should register with HMRC on 0845 915 4515. To register as self employed you will need your national insurance number and the date you started working as self employed. When you register as self employed you should tell HMRC that you wish to work within the Construction Industry Scheme and you will automatically be registered for CIS. If this does not happen automatically you should ring the CIS helpline on 0845 366 7899 and register over the phone.
What is Oriel Associates CIS?
Oriel Associates is registered under the Construction Industry Scheme and is authorised to pay CIS sub-contractors. We will process your CIS payments based on the information supplied by your agency. We will charge an administration fee for this service and pay your net wages to your specified bank account. As a self employed contractor HMRC will require you to pay your national insurance direct to them by direct debit. Oriel can help you with advice and support during the year and offers a discounted tax return service.
Can CIS sub-contractors claim business expenses?
As a self employed contractor you can claim tax relief for business expenses through your end of year self assessment, we will let you know the types of expenses you can claim.
What is the OSET?
It is essential that all CIS contractors are self employed. Contractors Employment Status has often proved difficult to test so we have developed our Oriel Self Employment Test (OSET) to guide you through the test. If the OSET indicates that you are self-employed you will be eligible to join the Oriel Associates CIS scheme. We will send you a starter pack. You will then be required to register with Oriel Associates and sign up to our Terms and Conditions. The Terms and Conditions outline how you sub-contract your services as a self-employed sub-contractor, and further highlight that your working practices are that of self-employed contractor, as opposed to that of an employee.
Please note, these documents must be completed and returned to Oriel Associates before any payments are processed, our online service can speed up this process.
What insurance cover do I have with Oriel Associates?
All CIS contractors are required by law to have Employers Liability and Public Liability insurance. Oriel can provide this cover at a small weekly fee and it will be essential that you take these insurances unless you can prove you are already covered by your own policy. We also offer all sub-contractors the option to buy additional Personal Accident Cover.
How do Oriel Associates receive my wages?
The Oriel Associates service includes the requirement for Oriel to invoice your agency for your wages. By signing our Terms and Conditions this enables Oriel to invoice your agency for your wages. These wages must be supported by a signed timesheet from your client which should be sent to your agency. Any delay in signing up to our Terms and Conditions and in sending in timesheets can hold up your wages.
Am I entitled to holiday pay with a CIS?
No, only employees and workers are entitles to holiday pay and not self employed individuals like yourself.
What if I want to go PAYE?
If your self-employed status changes you can be paid on PAYE terms through Oriel's umbrella service. You will need to complete an application form and then you can be transferred to Oriel umbrella there is no charge to transfer.
How and when do I get paid through CIS?
We process our payroll on the Wednesday following the working week and make your net payment direct into your bank account on the Friday. In order to meet these deadlines we will need all timesheets from your agency by 4 p.m. on the Tuesday and your agency will have to make payment to Oriel Contractor's by the Friday when your payment is made. If deadlines are missed we have the capability to make special payments but there is a charge for this service.
How are my tax deductions calculated?
The HMRC will define your tax deductions. When you register for the CIS scheme the HMRC will give you a tax status. Oriel Associates are required to verify your status with HMRC and will apply deductions based on this verification at the tax rate set by HMRC.
If we are unable to verify your status due to missing information we will be forced to make deductions at the higher rate of 30%. Once these higher rate deductions have been made they cannot be recovered until the end of the tax year as part of your self assessment. It is therefore vital that we receive all your tax information, normally Unique Tax Reference (UTR) and National Insurance Number (NINO) as part of your application form in order to verify your CIS status.
The current rates of Deduction are as follows:
- 30% for an unverified contractor
- 20 % for a standard rate contractor
- 0% for a gross rate contractor
The level of deduction Oriel Associates makes will be determined by the verification status given by the HMRC.
What is verification?
From April 2007, all self-employed CIS contractors must be verified with the HMRC.
When you register as self-employed the HMRC will issue you with a Unique Tax Reference Number (UTR). This can take up to four weeks but once you have your UTR and National Insurance Number (NINO) you can then register for the CIS scheme over the phone on 0845 366 7899 and instantly join the.
What is a Unique Tax Reference (UTR)?
This is the individual number allocated to each individual once a person has either registered as self employed or has completed a self assessment. It can take HMRC up to four weeks to issue a UTR when someone first registers as self employed. If you have received correspondence from HMRC your UTR will be displayed at the top of the letter as part of your details. The UTR is a 10 digit number in the form, e.g. 12345 12345. If you had one of the old CIS cards your UTR is the CIS card number less the last three digits.
Does Oriel pay my National Insurance with a CIS?
No, as part of your registration as Self Employed HMRC will request you to pay your National Insurance contribution direct to them by direct debit.
Do I need to register for the CIS scheme?
Yes, once you are verified as Self Employed you will have to contact the CIS helpline on 0845 366 7899 between 8.00am and 8.00pm and register with them. You will need your National Insurance number and your UTR to complete this process. If you have a temporary National Insurance number this will still allow you to register provided the temporary number is the one HMRC hold for you on their system.
