CIS (Construction Industry Scheme)
Star Payroll Professional includes as standard all the functionality required for the take on and paying of subcontractors under CIS rules. This includes initial on-line verification and on-line submission of the monthly CIS return (CIS 300).
Star Payroll Professional controls the entire process. When setting up an individual’s record in Star Payroll Professional, there is a choice as to whether the person has PAYE or sub-contractor status. In the case of a sub-contractor, a Unique Tax Reference is required and/or a National Insurance Number, before the payment amount can be entered. The employer can also record the Employment Status Indicator (ESI) reference number obtained from answering questions on the HMRC website which indicates whether the employee meets the specifications of a CIS employee.
The CIS record creation procedure automatically assigns an NT tax code and NI letter of X to the sub-contractor.
This means that sub-contractors and PAYE employees can be handled in the same datafile. This in turn means that employers can receive management reports that show sub-contractor and PAYE employee data both separately and combined.
All sub-contractor settings need to be verified with HRMC and the user is reminded of this as the record is being created. Once accepted, specific details of the trading status of the sub-contractor can be entered, such as sole trader, partnership, trust or company, together with associated information.
Verification of the sub-contractor can be made by telephone, manually on the HMRC website, or online by simply clicking on Star Payroll Professional’s Online Verification button and then stepping through the pages. Whichever method is used, the verification number and date is recorded and the appropriate tax is deducted on the next calculation.
