Bishopsgate Recruitment Services
Bishopsgate Construction Services
What is an umbrella company?
A fully compliant Umbrella company is a payment intermediary which acts as an employer to contractors who work on various temporary assignments. This provides contractors with a continuous period of employment whilst having the flexibility to work on many assignments with different clients.
The Umbrella company will invoice for the assignment rate whilst handling all the necessary deductions required by law. The remaining PAYE rate then will have the contractors’ personal tax and National Insurance deductions handled ensuring the candidate’s income and tax affairs are taken care of compliantly.
What is The Construction Industry Scheme (CIS)?
The Construction Industry Scheme (CIS) refers to a tax regime set out by HM Revenue & Customs (HMRC) to cater for self-employed contract workers in the construction industry. As a result of the amendment made to section 44 of the Income Tax (Earnings & Pensions) Act (often labelled the agency legislation) there are now stricter rules surrounding the employment status of contractors, with the burden of proof over a lack of supervision, direction or control now resting with the agency.