CIS Payroll


Frequently Asked Questions

HMRC (2)

Q. What deductions will be taken from my wage?

A. Our agreed margin (dependent on earnings) will be taken from your Gross amount, followed by your tax deduction which will then leave your Net pay amount. The normal tax deduction rate through CIS is 20% however, if your records are not matched up when we verify you with HMRC, or you are still waiting on your UTR number arriving when your first pay is due, it will be at the higher rate of 30%. Any tax paid at 30% is reimbursed by HMRC at the end of the tax year.


Q. Why do I get verified with HMRC?

A. Before any company pays a new contractor, they must first of all obtain a verification number from HMRC under the new rules introduced in April 2007. We will need your UTR and National Insurance number as a minimum to get you verified, but if you do not have a UTR number at the time you will be liable for higher rate tax deduction until your records are matched up.


CIS (1)

Q. How do I register for the scheme?

A. You can call the CIS helpline on 0845 3667899 and register for a Unique Tax Reference (UTR) number. The number will then be issued to you in the post normally within 2-3 weeks. We then need a copy of the UTR number once you have it, in order to get you verified. We also need you to complete our registration documents and send these back along with some photographic ID as detailed in the Eligibility to Work in the UK checklist.


Ontime (12)

Q. Will Clients still have to justify a sub-contractors self-employment status?

A. No, Ontime take full responsibility with regards to employment status and tax issues.


Q. Do I get a pay statement at least once a month?

A. Yes, we send out a weekly SMS text service which details you’re Net pay (after deductions) , but we are also obliged by law, to send out a monthly contractor payment and deduction statement which details what amount of tax we have stopped and sent to HMRC on your behalf.


Q. Do I pay VAT to ONTIME?

A. Yes,VAT is payable on all services provided.


Q. What does it cost to sign up?

A. Zero. There no sign up costs, nor any commitment, nor any exit fees.


Q. Are we committed to ONTIME for a set period of time?

A. We provide a ‘pay as you use’ service for which there is no notice required to terminate our agreement.


Q. What is ONTIME’S status?

A. Ontime is a Net Payment Status sub-contractor.


Q. Who is responsible for sub-contractor verification?

A. Ontime. You need only to verify us.


Q. How do the sub-contractors get paid?

A.  By BACS – weekly, fortnightly or monthly as required.


Q. Is an ONTIME sub-contractor entitled to holiday pay?

A. No. There is no entitlement to either contractual or statutory holiday pay.


Q. Are there any risks of sub-contractors being reclassified as my employees?

A. No. Their contracts are with us, not you, and you receive the full protection.


Q. Is ONTIME a Managed Service Company (MSC) Composite Company or any of the Directors associated with Labour Agencies?

A. No, we are neither. Ontime is a revenue approved labour-only sub-contractor that operates entirely within the CIS.


Q. Is ONTIME an agency?

A. No, we neither find employment for workers nor find workers for clients.


Self-Employment (4)

Q. Can I Claim expenses?

A. Yes, you can claim business related expenses on your Self-Assessment tax return each year. This could lead to tax rebates depending on the amount of expenses you put through.


Q. Do I receive Holiday Pay?

A. No, as a self-employed subcontractor you are not eligible for holiday pay or any other employment related benefits. You must set aside holiday pay on your own account out of your weekly/monthly income.


Q. Do I pay National Insurance?

A. As a self-employed contractor you are obliged to pay Class 2 National Insurance contributions. These can be paid by direct debit straight to HMRC by calling the Self-Employed helpline on: 0845 9154515.


Q. Do I need insurance?

A. It is advised that as a self-employed contractor you should make provisions for having your own Public Liability and Personal Accident insurance. However, we at Ontime have sufficient cover in place to protect you while on assignment.

Tax Return Service only £100

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