Subcontractors

Quick Answer Common CIS mistakes include misclassifying workers, failing to verify subcontractors, using an outdated deduction status and applying the wrong CIS deduction. Contractors can also make errors by omitting payments from monthly returns, failing to account for months with no payments or keeping incomplete records.A subcontractor cannot simply choose to be paid through CIS. …

What Common CIS Mistakes Do Contractors Make, and What Are the Potential Consequences? Read More »

Quick Answer Contractors paying CIS subcontractors need to verify each worker correctly, process payments using accurate information and make sure clear records are being kept of every stage.Before payment, the subcontractor’s details, including their name, National Insurance number and UTR, should be collected for HMRC verification. The result determines whether they are paid gross or …

What Must Contractors Do When Verifying, Paying and Keeping Records for CIS Subcontractors? Read More »

Quick Answer Managing CIS payroll is challenging not because the calculation itself is difficult, but because construction contractors must keep accurate information under control across a constantly changing workforce and multiple live projects. Each subcontractor may have different verification status, rates, working patterns and payment details, while new workers can join shortly before payroll is …

What Makes Managing CIS Payroll Particularly Challenging for Construction Contractors? Read More »

Quick Answer An agency should consider outsourcing CIS payroll when managing it becomes too time-consuming, cumbersome or distracting from the core business. Agencies have a lot of responsibilities to their workers. Collecting schedules, verifying workers, checking deductions, dealing with queries and completing reporting can quickly become another major responsibility, even for a relatively small agency. …

When Should an Agency Consider Outsourcing CIS Payroll, and What Should It Look for in a Provider? Read More »

Quick Answer The most common CIS payroll mistakes often begin with incorrect worker information, poor verification or assumptions about how somebody should be paid. Agencies need to establish whether a worker is genuinely self-employed, consider Supervision, Direction and Control (SDC), and verify each subcontractor with HMRC before applying a deduction. Automatically deducting 20%, using incorrect …

What are the most common CIS payroll mistakes agencies make, and what problems can they cause? Read More »

Quick Answer When paying CIS subcontractors, an agency’s responsibilities start before any payment is made. The first step is establishing that the worker is genuinely self-employed and that CIS is appropriate, including considering Supervision, Direction and Control (SDC). The subcontractor must then be verified with HMRC using the relevant information, including their UTR and National …

What responsibilities does an agency have when paying CIS subcontractors? Read More »

Quick Answer Paying construction workers is more complicated because the challenge isn’t simply calculating CIS deductions. Agencies must first establish whether a worker is genuinely self-employed, considering factors such as Supervision, Direction and Control (SDC), before deciding whether they should be paid through CIS or PAYE. Workers must also be correctly verified with HMRC, while …

Why is paying construction workers more complicated than payroll in other recruitment sectors? Read More »

Quick Answer To prove you are self-employed, you need to show that you are genuinely in business on your own account. Simply calling yourself self-employed, or having a contract that describes you that way, is not enough. HMRC and employment tribunals look at the reality of how you work. Evidence of genuine self-employment can include …

How to Prove You Are Self-Employed: Demonstrating You Are in Business “On Your Own Account” Read More »

Quick Answer If a subcontractor is not registered for CIS, or their details are not correctly linked with HMRC, they will usually be placed on the higher 30% deduction rate. This is not a Centurion Payroll charge, it is a CIS deduction set by HMRC. Centurion verifies subcontractors using their name, National Insurance number and …

What Happens If a Subcontractor Is Not Registered for CIS? Read More »

Quick Answer Outsourcing CIS payroll to a specialist provider is the simplest way to pay subcontractors on time without running payroll in-house. With Centurion Payroll, agencies send us a schedule of payments due, including worker details, hours or days worked, and rates. We then invoice, confirm approved hours with workers by text, process payments using …

How to Pay Subcontractors on Time Without Running Payroll In-House Read More »