FAQ’s
How does Sterling CIS work?
Becoming a Sterling CIS sub-contractor allows you to increase your contracting options whilst remaining self-employed.
Sterling CIS invoice the agency for the assignment and receive the gross amount from the agency for the agreed assignment .We deduct our mark up (between £8 -£23) depending on the gross amount. The relevant tax deduction (based on your CIS status) is then deducted and paid to the HMRC. The remaining funds are then transferred to your account on a weekly, fortnightly or monthly basis, dependant on assignment terms.
National Insurance Contributions (NIC’s) are not deducted – these deductions must be organised by you . A remittance advice is then sent to your home address detailing your gross income Funds are then transferred to your account via CHAPS (same day transfer) at no extra cost. We will also send you a SMS notification message outlining the amount that has been credited to your account; this payment will clear by close of banking business, which can be up to 17.00 on the day.By registering with us you become a Sterling CIS sub-contractor and receive all the support and backing of a large organisation, whilst retaining the freedom and flexibility of being self-employed and working on your own CIS status.
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As a CIS sub-contractor can I claim expenses?
Not through Sterling CIS. Because you are self-employed, any business expenses you incur as part of your assignments must be claimed back at the end of the tax year through the Self- Assessment system. You can instruct AGP Accountants to verify business related expenses on a weekly basis ready for self-assessments returns. At the end of the financial year, a set of accounts will be required for your sole trading business, generated by an Accountant. Any business expenses incurred will be treated as an overhead within your business. AGP Accountants can assist with self assessments/end of year returns, contact AGP on 01925 418 386 for details. Back to FAQ's
What is a SEQ?
Upon registering with Sterling CIS, you will receive a Contract for Services and self-employed questionnaire (SEQ). These documents outline how you sub-contract your services as a self-employed sub-contractor, and further highlight that your working practices are that of self -employed contractor, as opposed to that of an employee. Please note, these documents must be completed and returned to Sterling CIS before any payments are processed. Back to FAQ's
How do I keep a record of my income?
Following each payment we will send you a remittance, which you will need to keep for accountancy purposes and to complete your self-assessment tax return. Once a payment has been made we will send a SMS text to confirm a payment is on its way to your account Back to FAQ's
I am VAT registered can you accommodate this?
We require a copy of your VAT registration certificate; we can then pay all invoices including VAT. Back to FAQ's
What insurance cover do I have with Sterling CIS?
We provide all sub-contractors with Personal Accident and Public Liability insurance at no extra cost covering a wide range of job specifications. For offshore assignments, please contact our Compliance Department for insurance details. Back to FAQ's
Do I need to raise invoices to Sterling CIS Limited?
As a part of our service we will invoice the agency on your behalf to collect funds for your services, please return your Contract to allow this service to be activated. You must still submit an authorised timesheet to the agency we have sub-contracted you to, this will ensure prompt payment.
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Am I entitled to holidays?
No, as a business on your own account providing a service, you are not under the definition of a worker, thus not entitled to holiday pay.
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What if I want to go PAYE?
If your self-employed status changes or you wish to become a contractor paid on PAYE terms, then Sterling Solutions provides an umbrella service. Just complete an application form and you can be transferred to Sterling Solutions in no time at all; there is no charge to transfer either.
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Eligibility to Work - Why do you need this?
We require proof of identification to safeguard all parties involved and to ensure that we are sub-contracting a legal contractor out to our clients. Sterling CIS are not obliged to undertake such a check as we are not an employer but do so as best practice. Back to FAQ's
How and when do I get paid?
You will receive your payment on the day we receive funds from the agency. We pay by CHAPS (same day transfer) so please be aware that the funds could show in your account any time up to your banks close of business. Please note that we cannot guarantee same day clearance on certain building society’s due to their individual CHAPS clearance methods. Back to FAQ's
How is my tax deductions worked out?Who does this?
The HMRC will define your tax deductions based on whether you have verified your status with them. Tax deductions are based on;
30% deduction if an unverified contractor
20 % deduction if a Net verified contractor
0% deduction if a Gross verified contractor
Sterling CIS will deduct from your payment, the correct tax deductions based on HMRC’s instructions. Back to FAQ's
What is verification?
From April 2007, all self-employed contractors must be verified with the HMRC.
The HMRC will issue you with a Unique Tax Reference Number (UTR). Your UTR will replace the need for a CIS card. To register with the CIS scheme, or to receive a UTR number please call 0845 366 7899. Back to FAQ's
Will I need to pay National Insurance?
Yes, please contact the DWP Contributions Office on 0191 213 5000 to arrange self-employed contributions that can be paid by direct debit.
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How do I register as self-employed?
To register with the CIS, please contact, the CIS helpline on 0845 366 7899 (open from 08.00 to 20.00 every day) You will need a National Insurance Number to complete this process .For more information click here
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