Parasol CIS is the hassle-free way of making CIS payments to HMRC on behalf of your contractors.
We pride ourselves on providing a high level of customer service and we’re on hand to help if you, or your contractors, have any queries.
We provide comprehensive insurance and conduct a thorough Substitution, Direction & Control (SDC) assessment for every assignment, so you’re secure in the knowledge that you and your contractors are fully compliant.
We’re with you all the way.
Speak with our specialist agency sales team on 01925 644 861 or request a callback, for more information on how Parasol CIS can support you and your contractors.
CIS Frequently Asked Questions
What is CIS?
CIS is the acronym for The Construction Industry scheme. It is a simple way of HMRC collecting tax from self-employed subcontractors (as they’re referred to by HMRC), who work in the construction industry. This tax is mandatory and it is charged at 20% for subcontractors who are CIS registered, and 30% who are not.
When do our contractors pay this tax?
This tax is paid on all payments throughout the tax year. This effectively serves as an advance payment towards your contractor’s annual income tax. However, most subcontractors are due a tax rebate at the end of the tax year, as some expenses can be claimed back.
If you want to find out more, take a look at our sister company Brian Alfred who specialise in tax rebates.
When does CIS apply?
CIS applies to payments by a contractor to a ‘subcontractor’. In this case, the subcontractor is the person receiving payments for the provision of construction work (i.e. your contractors). This includes most work in the construction industry. Such as:
- Site preparation (i.e. laying foundations and providing access works)
- Demolition and dismantling
- Building work
- Alterations, repairs and decorating
- System installation for heating, lighting, power, water ventilation
Where doesn’t CIS apply?
There are some exceptions where your contractor won’t need to register. This would be if they did certain jobs such as:
- Cleaning the inside of buildings following construction work
- Architecture and surveying
- Scaffolding hire (without labour)
- Carpet fitting
- Making materials used in construction (including plant and machinery)
- Delivering materials
- Any other work on construction sites that wouldn’t be deemed as construction (i.e. running a canteen).
How does Parasol CIS work?
We’ll ensure compliance by conducting a Supervision, Direction and Control (SDC) assessment for all of your contractor’s assignments. This will help determine their self-employment status and confirm that Parasol CIS is the right solution for them. We’ll invoice the agency or end client on the contractor’s behalf and once these funds are paid, we’ll make any necessary tax deductions under CIS (and take a small margin) and then pay them the remaining earnings.
Our process ensures they’re paid quickly and compliantly. They would still be responsible for filing a self-assessment to pay any remaining tax (or to receive a rebate), but we can offer a discounted tax return via our sister company Brian Alfred.
What happens if a contractor’s assignment falls under Supervision, Direction and Control (SDC)?
Don’t worry. If they are subject to SDC, we’re still here to support you. For this assignment, they can become an employee of Parasol. Parasol will have a contract with you (the agency) and they’ll have a contract of employment with Parasol.
We’ll invoice you (the agency) and process their pay including tax and NI contributions, taking away the hassle and making sure they’re fully compliant.
Do we hold insurance?
Yes, we hold Professional Indemnity (£5m cover) and Public Liability (£5m) insurance. We also hold Employer’s Liability (£10m) in respect of our umbrella company.
