I have a new client who is an electrician. Most of his work is done in peoples houses but occasionally he works on commercial properties. Also on the odd occasion he needs an extra pair of hands to help him on jobs. When do this this fall under the CIS scheme and how should the odd pair of hands be treated. He is adamant that he doesn't have to declare paying this other person but I know that's not the case. I've told him the other person should be registering as self employed and declaring his earnings and my client should be showing that he has paid someone to help.
Does he need to register as a CIS contractor/subcontractor for when he works on commercial properties and should he be showing the money paid to subbies and take tax from them and then pay it over to HMRC?
Yes I would say electricians fall under the CIS scheme and he will need a UTR number etc. The person he has helping out I would also hope they are qualified as an electrician and registered too :/ ! Seems a bit dodgy to me x
Thanks for the replies guys. It's definitely not dodgy it just lack of knowledge. The owner is a qualified electrician but the casual labour is just a mate to help with non-electrical things. He has a UTR number and I hope he has registered for online and has is password etc.
I am about to start the processing of the accounts ready to put into the Self Assessment but he hasn't given me his log in details yet.
I am guessing then that we need to contact HMRC and see what he needs to do regards CIS?
I think the casual person also needs to register for self employment but i know they will say it's not worth it for the amount of work they are doing.
I am going to have to persuade my client that he needs to do things by the book otherwise if he gets an inspection how is he going to explain what he has been doing.
The extra pair of hands should really be employed as casual labour, it doesn't sound like he comes within the scope of CIS
The electrician should definately be registered. I work for a main contractor and even our one man band electrician/plumber etc subbies have to be registered. We also recently got a telephone call from hmrc asking about how many subbies we currently have (think they are trying to check up on the fact that they are genuine s/e rather than people who really should be employed)
