RACS CIS is an industry leading Construction industry scheme for contract workers, complying with legislation surrounding CIS without the hassle of running an in-house service. We conduct direct liaison with HMRC regarding CIS % rates and set-up within 24 hours.
A Construction Industry Scheme Contractor working through RACS and its third party, independent professional service providers will ensure compliance and qualified professional advice is achieved at all times. In keeping with new legislation around the contractor market place, a Personal Service Company allocated by RACS will give Agencies and Contractors the peace of mind of a fully compliant scheme.
Running your own Personal Service Company has many benefits.
Working as a Contractor and a Director through your company gives you total freedom, flexibility and the potential to earn and negotiate better rates with billing agents such as Recruitment Agencies and End User Clients.
Tax efficient models allow you to maximise on the expenditure realised in running your business.
As a shareholder of your company you decide what salary and dividend your company pays you from the profits it makes.
All of this can be achieved when you instruct the services of
third party professionals through RACS.
Minimal Fuss.
Maximum Control.
RACS Collective will offer you (through third party providers):
A Construction Industry Scheme Contractor working through RACS and its third party, independent professional service providers will ensure compliance and qualified professional advice is achieved at all times. In keeping with new legislation around the contractor market place, a Personal Service Company allocated by RACS will give you the following Benefits:
IR35 is tax legislation introduced in the 2000/2001 tax year. Its purpose is to ensure that those individuals who work through a limited company and who therefore treat a portion of their income as salary and a portion as dividend are entitled to do so. This largely hinges on the basic question “are you self employed or employed?”
Unfortunately, there are no hard and fast rules on this and it is initially the Tax Inspector and ultimately the courts, to consider each case that comes before them. As the legislation is still new, there are relatively few court rulings to help us, so the best you can do is to take reasonable precautions to consider whether the legislation could affect you. If the Inland Revenue decides that you should be regarded as “employed”, then you would potentially be liable for the tax that should have been paid had all your income been treated as subject to PAYE and NIC. This is largely the PAYE and NIC that you saved by working through your Recruitment and Services allotted PSC, subject to certain allowances.
You could also be charged interest on the amount you have been found to have underpaid – and possibly penalties as well, if the Inspector feels you are at fault.
It will help your case for self-employment for IR35 purposes if you can answer YES to the following questions:
Disclaimer: Please note that this illustration is based on opting for National Minimum Wage and Dividend (based on company profit) calculated on a standard UK tax code and must be considered a guide only.
Personal circumstances may affect these figures- RACS CIS cannot be held responsible for any misguidance.