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January 16, 2024

CIS

  • January 16, 2024
  • 2 replies
  • 0 views

I’ve recently started an electrical company, of which I am the sole director and employee. Beforehand I had been working as a sole trader for a few years. I still regularly get paid as a subcontractor through CIS, and I am wondering can I still be paid as an individual through CIS or does it have to go through the limited company? Thanks 

    2 replies

    paul72
    January 16, 2024

    Hi @conalld-codelect 

     

    If you have retained your individual CIS registration then, yes, you can 'moonlight' from your day job in just the same way as any standard employee.

    Where you might come unstuck (from HMRC's point of view) is using company resources for your private jobs - especially if both are in the same line of work.  This would include not only tools & consumables but also information.  If the company is paying for advertising, for example, the benefit of that must go to the company.

    You can't have expenses being paid by the company but profit being taken personally.  That's why most people would route every job through the company - it quickly becomes a minefield otherwise.

     

    Hope this helps.

    January 17, 2024

    Hi conalld-codelect, thanks for posting on the Community

     

    Please consult with HMRC or a tax professional for best advice as this isn't something that we can advise on. If you're looking for an accountant, you can also find a QuickBooks certified accountant specializing in construction near you on our online directory.