When running Construction Industry Scheme (CIS) payrolls in Paycircle, you have the option to set up CIS subcontractors. You can then process CIS payments for them, and calculate the correct CIS deductions. To do this, watch the video or follow the steps below.
Choosing a subcontractor’s business type
To add a CIS subcontractor to a company, follow the steps below.
Note: You must enable the CIS module in the companies settings.
Click the Team tab, then click Add team member.
Pick the business type for the contractor.
Adding subcontractor information
For Sole Traders and Partnerships, you will need to add a personal UTR. A Partnership will also require a Partnership UTR. A company UTR will need to be added for a Limited Company and a Trust.
For any business type, you will need to provide a trading name. If the subcontractor is VAT registered, you will also be able to provide a VAT registration number.
Verifying the subcontractor
The final stage of adding a subcontractor is verifying them. If they haven’t been verified before, or the last time they were verified was longer than two years ago, you will need to verify them through Paycircle.
If the subcontractor was last verified less than two years go, you can enter their verification details. You will need to enter their verification date, verification number, and deduction rate. The different deduction rates are Standard (20%), Higher (30%), or Gross.