How do I register for the scheme?
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.
Why do I get verified with HMRC?
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.
What deductions will be
taken from my wage?
Our mark-up fee of £5, £11 or £15 (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.
Do I receive Holiday Pay?
No, as a self-employed sub contractor 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.
Do I pay National Insurance?
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.
Can I Claim expenses?
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.
Do I need insurance?
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 Orbital have sufficient cover in place to protect you while on assignment, as this is a common request made by most of the agencies that we contract with.
Do I get a pay statement
at least once a month?
Yes, we send out a weekly SMS text service which details you're Gross and Net (after deductions) pay, 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.