Qualified Contractor Services Ltd receives payments from its clients in respect of services rendered by you as our sub-contractor. Our dedicated payments team then allocates a payment to you on the basis of the services you have provided in the prior week.
Payment is then sent to your designated bank account.
You will receive a text message confirming the amount paid to you and the day on which funds should reach the account. A payment and deduction statement confirming the breakdown of the payment is then posted to you.
FAQ Qualified contractor services
Q: What is CIS?
A: The Construction Industry Scheme is a special tax regime administered by HM Revenue and Customs which is designed specifically to tax payments to made to sub-contractors within the construction industry. A benefit of being paid under the CIS scheme is that you can have tax deducted from the payments you receive on account of your tax liabilities due at the end of the financial year. You may also be entitled to claim tax relief on qualifying expenses incurred in undertaking your duties.
Q: How do I register for self-employment?
A: You can register for self-employment by calling the HMRC CIS Helpline on 0300 200 3210. When registered for self-employment your Unique Tax Reference (UTR) number will be posted to you. Once you have this number you will be registered on the CIS Scheme. Please note that you will have to call the HMRC to activate the UTR.
Q: Why am I being taxed 30%?
A: If you are not registered under the CIS scheme you will be taxed at the higher 30% tax until you receive your UTR.
Q: Do I get holiday or sick pay?
A: No, as a self-employed subcontractor you are not entitled to receive statutory payments such as redundancy, sick pay or holiday pay.
Q: How do I know when I will be paid?
A: You will receive an SMS text message on Wednesday to confirm the amount that will be paid into your account on Friday. You will get also weekly pay slips posted to your address with the total amount paid to you.
Q: What is the Qualified Contractor Services margin and why do I pay it?
A: The Qualified Contractor Services margin is our fee for processing of your payment. Each week Qualified Contractor Services will ensure that your payment is sent to your account and that tax deductions are sent unto the HMRC.
Q: As a self-employed, who I am working for?
A: Self-employed people work for themselves. As a matter of engagement , your contract for services is with Qualified Contractor Services. This means that you are providing your services to us.
Q: If a project finishes or I am not longer needed on site, will I receive a redundancy payment?
A: No. Redundancy is an employment related concept and does not apply to self-employment. Whilst self-employment offers the ability to move freely from site to site, working for a variety of different contractors, you will not receive payments when you are not working, for example when no work is available.
Q: Do I need pay National Insurance?
A: Yes. As a self-employed operative you must take responsibility for paying your Class 2 and 4 National Insurance contributions. Failure to do so could result in HMRC imposing fines. Class 4c National Insurance is calculated automatically through your self-assessment tax return.