IMPORTANT INFORMATION
CIS Self Employed Status
Under existing rules workers should only be engaged as self-employed where they are not subject to (or to the right of) Supervision, Direction or Control [SDC] as to the manner of working by any person.
It is the responsibility of the recruitment company to make this assessment, ideally in conjunction with (and with the support of) the end client, to ensure only those workers outside of SDC are engaged as self-employed. The worker should not be engaged as self-employed unless the client supports a ‘no SDC’ determination.
Where HMRC successfully challenge the SDC status any resulting liabilities fall on the agency. For these reasons we do not advise having a provider carry out assessments. As a result we are unable to offer any warranties or assurances on this.
Many will operate a ‘sense check’ and provide feedback if they feel there may be issues, ultimately it is the agency choice as they hold the liability.
We would never advise engaging workers outside of construction through a self-employed model.
CIS Gross Status Umbrella
Workers deemed to be caught by SDC and operating in the construction sector are likely to be engaged through an umbrella company.
Where the umbrella has gross payment status this makes the invoicing, payment process and reporting more straight forward.
You should always check the umbrella used for construction workers holds Gross Payment status, and, if not, you as agency must apply appropriate CIS deduction to sums paid to the umbrella for construction workers, on whatever basis they are engaged by the umbrella.
Following the announcement in The Finance Bill 2026 of Joint and Several Liability these arrangements will be caught by the new legislation.
Please review our Fortis Integrated Providers to find a suitable umbrella to operate these worers through.
For an agency to operate with Fortis you will need your own Fortis Portal to find out more or request this please email: fortis@professionalpassport.com.
We are unable to offer any warranties or assurances if you deal with an umbrella outside the Fortis system.
