Choose your CIS payment vehicle carefully
A Google search of CIS payment companies will show an increasing number of providers entering the market place. In a largely unregulated industry, it's more important than ever to choose a CIS partner with a history that has stood, and will stand, the test of time. We hear too many stories of empty promises and questions over whether providers paid tax over at all. Companies offering deferred payments and credit are asking to fail. Others run scared when tribunals and compliance teams arrive at their doorstep. If you are choosing to work with a CIS payment vehicle, there are a few points to keep in mind.
Track record of working with CIS
CIS is a deduction-at-source tax regime for construction operations whereby contractors withhold and pay to HMRC deductions on account of a sub-contractor's eventual tax liability, be they individuals, partnerships or limited company sub-contractors. The rate of deduction is specified based on many factors but will be one of zero for sub-contractors with gross status, 20% or 30%.
Since you will be entrusting the business of engaging sub-contractors for your operation, and negotiating the legal and tax maze it entails, you need to be able to trust that your provider is a market-leader in CIS.
Your provider should be equipped to deal with all of this and have back-up insurances in place, tested to prove their worth. In truth, many CIS payment providers have neither the financial resources, personnel and knowledge nor the historical reputation to be trusted with large weekly transfers of your business' hard-earned money.
Reason to choose The Guild
The Guild has been involved with CIS for over 22 years and no other UK business has more experience in ensuring its smooth operation. We have in-house experts in accountancy, law and taxation to ensure that we remain up to date with the latest CIS tax practices, status tests and legislation as these matters affect both contractors and sub-contractors. Having such in-house capabilities also enables us to maintain much faster communication paths with our clients. Reaction to amended IR35, landing in April, speaks to those communication lines - with many clients taking advantage of our early assessment of personal service companies and our offer of engagement solutions.
CIS compliance is paramount to us and we ensure that CIS deductions are accurately calculated and that payments to sub-contractors are made on time, every time. This gives our clients peace of mind that both service and tax compliance are fully taken care of. We recognise that each client has different needs and much of our success has resulted from fulfilling those needs with a personal touch.
Choose your payment company carefully - call The Guild on 020 8515 2999 for more information.