I hope someone can help with a query I have. I have not contacted the client about it yet. I have some CIS pay slips that have a company name on them called Paystream my max limited.
The Tax Code is showing as NT which means no tax to be deducted.
The payslips show Gross Pay: 2442
Taxable pay: 2442
VAT: 488.40
He is definitely CIS self employed and all his other payslips for other years are regular CIS showing 20% tax deducted.
As you've noticed 'NT' is a bone-fide tax code of the UK PAYE system. On it's own this suggests (whatever his status beforehand), that with this particular payslip, he is treated as an employee.
The other clue is Paystream who have a product called My Max detailed here:-
The product is sold on the basis of "maximise your take home pay". The blurb indicates PAYE. Does he have a P2 Coding Notice from HMRC instructing the employer to use NT tax code?
As for the VAT, there are some weird and wonderful things go on with intermediaries but as he is the employee, it may be the umbrella company who are VAT Registered.
You ought to find out what Paystream bumph says about preparing a set of accounts. Some consequential phrases are:
The umbrella company makes your Pay As You Earn (PAYE) and National Insurance deductions for you, and allows you to offset allowable expenses like travel, meals and accommodation against tax
no unexpected tax bills and a very straightforward process for claiming expenses.
My last comment is probably unhelpful as often the sub-contractor doesn't know what he's signing. Furthermore, they don't get much choice in the matter if they want the work.
I had one where the secretarial organisation (whats the term?) disappeared off the face of the earth, so I had to rebuild the PAYE scheme and file it along with CT and Companies House returns. Hope this doesn't happen in your case but if you can find out what the employer is called, that would be a start to finding out that all is in order.
