As a subcontractor, you will likely have tax taken off you before you get paid. There are some key steps that you’ll need to go through in order to make sure you’re in the clear, and able to stay operating how you want.
You’ll need to make sure you’re registered with HMRC as a subcontractor and get verified by a contractor in order to find out what rate applies to you.
There are three rates:
- 0% can be applied if you have applied for gross status, but certain conditions must be met.
- 20% is the most common deduction, but you must be registered with the tax man first.
- 30% is applied in all other circumstances when you haven’t been verified.
We can help you understand how CIS will work for you, and make sure that you’re set-up, and ready to work with minimal stress. That end-of-work pint will feel so much better.