Orange Genie Construction 

If you’re a contractor working in construction, you might want to be employed by an umbrella company, or it might be better to opt for CIS self-employment, depending on your circumstances. Fortunately, whichever is appropriate for you, Orange Genie Construction has the simple solution you need.  

With construction umbrella you’ll be employed by us and we’ll calculate tax and National Insurance on a PAYE basis, just like a conventional employer. You’ll have full employment rights, including paid holiday, sick pay, maternity/paternity pay and access to a workplace pension scheme. This option is better for you if want the security of employment, or don’t class as self-employed for tax purposes.

With our CIS self-employment solution, you’ll be self-employed and tax will be deducted at a flat rate when you’re paid. You’ll complete a tax return at the end of the tax year to claim any refund you might be due. This is the best option if you’re happy with a little more administration and can evidence that you’re genuinely self-employed.  

We’ll support you through CIS verification and registration, and we’ll make sure you’re fully compliant. We’ll also raise all your invoices for time worked and make the appropriate CIS deductions. You’ll also be covered by our Public Liability insurance, so there’s no need to arrange your own.  

Our team of friendly experts will talk through your specific situation and advise you which option suits you best.  

CIS Self-Employment – how it works

Under the Construction Industry Scheme (CIS) money is deducted from your payments and passed to HMRC. These deductions count as advance payments against your tax. After the end of the tax year, you complete a self-assessment tax return and you will either pay any additional tax you owe, or you’ll receive a refund if you’ve overpaid. It’s common for CIS contractors to overpay and claim a refund with their tax return.  

The CIS applies if you’re self-employed and engaged to carry out construction work to either buildings or structures, or civil engineering works like roads and bridges.  

One important question to ask is whether you are genuinely self-employed. If you’re not, you’ll need to pay tax and NI at the same rate as an employee, and the recruitment agency or end client will have to pay Employers National Insurance. 

If you’re incorrectly engaged as self-employed when you’re actually employed for tax purposes, you, your agency or your client will be liable for the additional tax and NICs, including interest and penalties.   

You will be considered to be “employed for tax purposes” if the end client has the right to supervision, direction or control. It’s the right that’s important, not whether it’s exercised, and if one of the three applies you’re caught – it isn’t necessary for all three to apply. 

The Definition of Supervision, Direction and Control (SDC) 

Supervision applies when someone oversees your work to ensure it’s completed, and/or that it’s done to the required standard. It can also include helping you develop your skills and knowledge.  

Direction is where someone makes you complete the work in a certain way, or provides instructions, guidance or advice as to how the work should be done.  

Control applies when someone dictates which work you do and how you should do it. This also includes having the ability to move you from one task to another as priorities change.

At Orange Genie, we have a robust and well-tested process to determine whether you’re genuinely self-employed, and our team will advise you whether CIS self-employment is appropriate for your circumstances.