LATEST NEWS FROM STERLING CIS

Changes to Sterling CIS registration process

Please click here for the latest updates to the Sterling CIS registration process 

Registering as self-employed

Sterling CIS is specifically for self-employed contractors working in the construction industry.

During 2007, the HMRC introduced an improved way for construction contractors to register as self-employed through the Construction Industry Scheme (CIS)

Once registered with the CIS, you will receive a Unique Tax Reference (UTR) which confirms the tax deduction rate set by the HMRC. Tax deductions are currently 20% for sub-contractors registered with HMRC and 30% for those not registered.

You must be aware that Sterling CIS are not responsible for arranging National Insurance Contributions (NIC) or other accountancy requirements, these must be organised by yourself.

Sterling CIS does recommend the services of AGP, who are specialists in accountancy services for self-employed contractors.

To register with the CIS, please contact
• The CIS helpline on 0845 366 7899 ((open from 8.00 am to 8.00 pm every day)
• You will need a National Insurance Number to complete this process


FAQ’s about registering with the CIS Scheme
CIS Scheme website

2007 Budget response

As you may be aware, the Government announced in December 2006 that it was intending to consult on possible action to tackle what they describe as “Managed Service Companies”.

In the budget speech of 21 March 2007 the chancellor released his decision on Tackling Managed Service Companies.

The key elements of this release are as follows;
• The transfer of debt provision for agencies has been deferred to 6 January 2008, with no reclaim of debt for the period 6 April 2007 to this date
• The transfer of debt for directors and office holders of MSC’s has been delayed until the later Royal Assent is delivered or on the 6 August 2007
• Exclusions for employment agencies and business’s who do not influence or control the finances of the companies

Sterling will offer from the 6 April 2007 three products, Sterling CIS self-employed, Sterling Techserv self- employed and Sterling Solutions. Sterling Techserv will sub-contract to recruitment agencies for all sub-contractors outside of the construction industry.

Construction Industry self-employed sub-contractors and sub-contractors outside of this industry and also umbrella employees have not been sited in this legislation. Sterling believes that from this budget we can only offer these services that are not within the legislation to safeguard all parties concerned.

The contractual chain between Sterling Solutions, CIS and Techserv and recruitment agencies will be treated in the following manner;

Assignments within construction the two options will be;

• Sterling CIS self-employed - Sterling CIS deduct the statutory 20% CIS taxation (this is to increase from 18% on the 6 April 2007) from the gross payments received, the onus for year end tax returns and any such liabilities being on the self-employed sub-contractor
• Sterling Solutions – the employed route, Sterling Solutions welcomes contractors to become employees of Sterling Solutions. Business related expenses can be claimed on a weekly basis and holiday pay will be retained on a weekly basis.

Assignments not within construction the two options will be;

• Sterling Techserv self-employed –Gross payments received - the onus for year end tax returns and any such liabilities being on the self-employed sub-contractor. The onus for year end tax returns and any such liabilities being on the self-employed sub-contractor.

• Sterling Solutions – the employed route, Sterling Solutions welcomes contractors to become employees of Sterling Solutions. Business related expenses can be claimed on a weekly basis and holiday pay will be retained on a weekly basis.

If an individual wishes to operate via a personal service company, then such a company must contract directly with an agency. If they require professional services for their company we would recommend AGP Chartered Accountants 01925 418 386, but they could use any one else of their choice if they prefer.

If an individual needs to purchase a limited company we would recommend Mandarin Formation Services Limited 0870 754 1212, but once again the choice is theirs.

Sterling CIS Limited or Sterling Techserv Limited will not be sub-contracting to Personal Service Companies.