How do I register as self-employed?

If you are not already registered as self-employed, then you must contact HMRC on 0845 915 4515 to register for self-employment. You will be given a UTR (Unique Tax Reference).

How do I register under the CIS scheme?

To register for CIS you must first ensure you have both your UTR and your National Insurance (NI) number, then call the CIS Registration office on 0845 366 7899. Until such time as you have registered, your CIS tax rate will be set at the higher rate of 30%. Be sure to contact us once your registration is complete so that we can adjust your tax rate to 20%.

Does i4 CIS find work for me?

i4 CIS is not an employment agency or employment business and does not offer any form of work-finding services. You are responsible for contacting agencies or companies for work as you are self-employed in business on your own account.

Can I find work through any agency or end-client?

Yes, provided that we can agree terms of business with them. Please provide full details of any new agency or end-client to us first.

How and when do I get paid?

Before we can make any payments, you need to have signed and returned your Application Form, your Contract for Service and some form of photographic identification. Under the CIS rules we have to verify your status with HMRC. We process payments every day of the week (excluding bank holidays) and the money should clear in your account by the end of the day (if your bank participates in the Faster Payment scheme, otherwise it will take up to 2 working days to clear).

What deductions are taken from my payment?

Statutory tax deductions are made in accordance with the CIS tax rate advised by HMRC. This is normally 20% if you are fully registered or 30% if your registration is pending. We also deduct our fee which is inclusive of any insurances that apply, text messages and advice and guidance on self-employment status and tax matters. If you have selected Public Liability and/or Personal Accident insurance cover then we deduct the premiums from your net payment.

Do I require any insurance cover?

As a self-employed contractor you are required to carry Public Liability insurance and this is mandatory in order for you to get paid through us. We can provide Public Liability cover (up to £5,000,000) at a competitive rate of just £2.00 per week, or you can arrange your own policy. We also offer Personal Accident insurance which covers you against occupational workplace accidents whilst working through i4 CIS as a self-employed individual. The policy provides valuable financial assistance if you have an accident at work or while you are commuting to and from your workplace and costs only £2.00 per week. The policy provides comprehensive cover which includes accidental death; loss of limbs, eyes or permanent total disablement; loss of use of fingers, toes, joints, hearing or speech; and covers some associated medical expenses. Please ask for a policy document if you wish to see the full details.

Am I liable for National Insurance?

As a self-employed contractor you are responsible for paying your Class 2 National Insurance contributions (on a monthly or quarterly basis) and your Class 4 National Insurance contributions (at the end of each tax year). For more information on NICs, view our CIS Essentials page.

Am I entitled to holiday pay?

No. As a self-employed individual you must take responsibility for setting aside sufficient funds for your holidays.

What happens if I am VAT registered?

If you are VAT registered then you must let us know immediately and send us a copy of your VAT registration certificate. You must register for VAT with HMRC if your turnover for the past 12 months exceeds the annual registration limit (currently £68,000).

Can I claim expenses?

You must retain receipts of all business-related expenses that have been incurred wholly, exclusively and necessarily in the the course of carrying out your business duties. All valid expenses may be used to reduce your taxable profits which means you will pay less income tax and National Insurance. Your final tax liabilities will be calculated when you prepare your annual self-assessment tax return, so it is vital that you keep a good record of your expenses during the year.

What paperwork is required?

We will produce what is called a self-billing invoice (an invoice for your work made out to us) and you will receive a copy of this each time we raise an invoice to your agency or end-client. All you have to do is keep this in safe place as it will be required to produce your tax return. We will also issue you with a remittance advice (showing how the payment to you has been calculated) and a tax advice (showing your CIS tax deduction) each time a payment is made. Again, keep these in a safe place.

Do I need to submit a self-assessment tax return?

If you have any income from self-employment, then you are required by law to submit a self-assessment tax return to HMRC on or before the 31st January each year. Your tax return will show all of your income received from your self-employment, your valid expenses and the total CIS tax paid during the course of the year. You must therefore retain all invoices, remittance and tax advices and expense receipts.

If you require assistance with your tax return then please call us - but don't leave it until the last minute!