CIS only schemes – what to know…

If your business is new or you are looking to take on CIS Subcontractors, read this first!

If you are considering engaging CIS Contractors as with most things you will need to register for this with HMRC.

If you don’t intend to have any employees you do still need a PAYE scheme but a specific type which can be confusing. A CIS only scheme is actually known as an XP PAYE Scheme.

This is a type of PAYE scheme that does not place a requirement on the business to submit RTI submissions in the same way as we would with a typical payroll.

In fact XP schemes cannot join RTI at any time.

Below is a checklist of information HMRC will need from the business in order to set up this type of scheme:

Organisation details:

Business name and also Trading name (if applicable)

Type of business i.e. Sole trader, Partnership, individual, limited company etc

Business address and nature of business

Scheme start date

Employer contact information:

Telephone number, Contact name and email address

Fax number

Limited company details:

Company Registration Number, Registered Office and Company UTR

Directors’ details:

Name and address, National Insurance number

Date of appointment and personal UTR

This is fairly straightforward to set up (providing you have all of the information listed) and a call to HMRC’s Employer Helpline is advisable as the quickest way of getting this in place.

However we are more than happy to help set these type of schemes up if required.

If you would like us to manage CIS returns on your behalf we can do that as well. Why not give us a call and find out how we can help?