The client and the issue
EEBS has an existing client who is a large stonemasonry contractor, and they engage tradesmen in five different ways. These are three grades of stonemason, those being expert stonemasons, semi-skilled, and trainees, plus two different types of labourers, – one set a logistics team for moving stone from quarry to site, and the other site labourers.
That’s five different skill sets, five different types of supply, but originally all engaged through EEBS as CIS subcontractors, under the same contract for services.
The direction, supervision or control element of the new legislation meant that the former one size fits all solution is no longer viable for this client.
After a review of the individual terms of each engagement, the supply of sub-contractors has now expanded into four different and bespoke arrangements:
- A traditional PAYE agency model for the trainee stonemason and site labourers,
- The traditional CIS self-employed model for the skilled stonemasons,
- The establishment by some sub-contractors of their own personal service limited companies,
- And a new hybrid, self-employed/PAYE model for the logistic teams and labourers.
This model allows the client to engage tradesmen under contracts of self-employment, but with their earnings being subject to PAYE, not CIS. Given that employment status is established by the contractual arrangements and not the payment method, the model is compliant with all relevant legislation.
The downside of the new approach for the client is a small increase in administration, and a marginal increase in costs, which primarily comes from NI on the PAYE model.
The benefits to the clients are that they:
- Avoid exposure to most Employment Rights legislation
- Are not required to pay holiday pay
- Avoid the cost and administrative headache of complying with pension auto enrolment legislation
- Maintain a flexible, competitive workforce, through a bespoke, Revenue compliant solution.
EEBS Solutions include:
- CIS Payrolling with guarantees of Self Employment Status
- Self-employed but subject to PAYE hybrid models
- Personal Service Company solutions
- CIS administration services