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FAQs

Construction Industry Scheme is an HMRC scheme, which applies to contractors working in the construction industry (but not employees). CIS rules state that a contractor must pay your earnings minus tax deductions even though you are not an employee. 

Mandatory contributions levied on individuals or corporations by a government entity.

National Insurance Contributions are a form of tax paid by all employees and the self-employed. They are only applicable to earnings (not income sources such as property, savings, pensions etc) and qualify the payee to social security benefits such as a state pension. 

Unique Tax Reference is the 10-digit code that identifies you or your business.

A workplace pension allows employees to save for their retirement. A percentage of pay is put into the fund each month and the employer usually contributes. 

This is an allowance, which means that employees will still be paid when they are taking time off. Holiday allowance is usually accrued by the number of days worked.

Statutory Sick Pay is paid by employers to employees who take time off work due to illness. It applies when a person cannot work for more than three consecutive days with a time limit of up to 28-weeks.

Right to work is the term used to describe a person’s validity to work in the UK. Employers are legally required to check that a job applicant is entitled to work here.

National Living Wage is the minimum amount per hour that all workers are entitled to.

National Minimum Wage is the minimum amount you can pay a worker per hour.

Supervision, Direction and Control was constructed in 2016 to limit the number of contractors able to claim travel and subsistence expenses.  Any worker who is subject to SDC, i.e. somebody else has the authority to tell you how to do the job, can only claim expenses in line with those available to permanent employees. 

Construction Industry Training Board levy is an annual payment made by employers/contractors to support reinvestment in the construction industry.

A form of taxation paid by employers and designed to help companies offer more apprenticeship places.