Hello,

I would like to know if I welder/fabricator CIS self-employed working for Recruitment Agency can invoice straight forward the Recruitment Agency I work for. Now they force me use an umbrella company which cost 20 quid every week. I am able calculate and pay the tax for my self. They say that I can´t invoice them. Only in the case I would set up a limited company. Any help please?

Hi Jan,

I'm sorry but we are not familiar enough with the Construction Industry Scheme to say whether you can directly invoice your recruitment company. You will need to ask your accountant or local tax office.

Regards,

Hi Jan,

The issue is regarding tax avoidance and liabilities. The agency will only allow you to invoice them if you have a Ltd. company for tax reasons as this removes any of your potential employee tax liabilities from them unless you are working through them PAYE (which means that you don't get your full hourly rate paid to you). An Umbrella company is (in essence) the same in that the tax liabilities are removed from the agency. In years gone by many agencies have been stung by "self-employed" people taking their gross rate and claiming that it was net thereby forcing the agency to pay their Tax and NI.
Hope that this helps anyway and good luck !

Hi,
You can contact with the tax officer or to your local accountant.
He can give the description of the situation and can give the solutions also.