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Faqs
When does IR35 apply?
As we all probably know already, the IR35 off payroll rules that the Government introduced into the public sector a few years ago are to be rolled out to the private sector from 2020. The reality is that unless you are a large business then the changes will not apply to you.
What is the Reverse Charge VAT for the Construction Industry Scheme?
As of the 1st October 2019 the Government are introducing a reverse charge VAT scheme into the construction industry as an anti-theft measure, intended to remove the opportunity for fraudsters to collect VAT from their customers then disappear before paying it to HMRC.
I’ve received a letter from HMRC regarding the status of my workers, what should I do?
Firstly, don’t panic. A member of the EEBS team will be able to talk you through what to expect and advise you on what to do next. You can contact EEBS on 01245 493832 or email us at info@eebs.co.uk if you require helpful and professional advice.
What’s the weekly process from start to finish?
EEBS provide you with a bespoke online portal for uploading sub-contractor work records and timesheets. We then take over all responsibility for liaising with HMRC regarding these sub-contractors and the reporting of payments made. This greatly reduces your monthly CIS burden as you only report the monthly payments to EEBS
Why choose EEBS?
EEBS: prevent HMRC from reclassifying your sub-contractors as employees reduce the risk of Employment Rights claims remove the burden of CIS admin save you time and money offer a comprehensive guarantee address the Onshore Intermediaries Act Legislation 2014 are an established, experienced and trusted CIS payroll company work with the UKs top tax advisors business model has never been [...]
Does EEBS provide a guarantee?
Yes! If, after a status investigation HMRC were to challenge our arrangements, or if a sub-contractor were to take you to an employment tribunal whilst being supplied by us, we will manage the entire process for you, with full legal support. If we were to lose the case (and to date we have never lost […]
Is EEBS Revenue approved?
EEBS was subject to a full HMRC inspection and review in 2007. HMRC accepted the way we operate, and has never sought to either challenge our model in the courts or revoke our gross payment status.
What about insurance?
It is mandatory for our sub-contractors to have public liability insurance and we allow two options: Option 1) Labour-only sub-contractors may already be covered by a contingent element of your own Employers Liability Insurance. If you wish to continue with this arrangement, we will ask you to sign a declaration to this effect. Option 2) [...]
Do I pay VAT to EEBS?
Yes. VAT is payable on all services provided.
Are we committed to EEBS for a set period of time?
No. There is absolutely no set time commitment or tie-in. We provide a pay as you use service. No notice is required to terminate our agreement.
What does it cost to sign up?
Nothing. There are no sign-up costs, nor any exit fees.
How much does EEBS charge?
Our charges are based on a sliding scale, we earn between £10 – £20 per sub-contractor per week, the fee is determined by the number of operatives that a client processes with us on an average week.
What is EEBS’ status?
EEBS is a Gross Payment Status sub-contractor.
Who is responsible for sub-contractor verification?
EEBS. We verify every sub-contractor that you register with us. All you have to do is verify EEBS as your sub-contractor with HMRC.
How do I pay EEBS?
By CHAPS or BACS.
How do the subcontractors get paid?
By BACS – weekly, fortnightly or monthly as required.
Is an EEBS sub-contractor entitled to holiday pay?
No. There is no entitlement to either contractual or statutory holiday pay.
Have any of your clients been penalised by HMRC following an inspection?
No, we are proud to say that none of our sub-contractors have ever been reclassified as employees; and none of our clients have faced fines or penalties from HMRC in relation to any of our sub-contractors. Many clients have had reviews or inspections since signing up with us where HMRC have been fully satisfied with […]
Are there any risks of these sub-contractors being re-classified as my employees?
No. Their contracts are with us, not you.
If I use EEBS am I at risk from debt transfer under the Onshore Intermediaries Act?
No. After consultation with HMRC and the Aspire Business Partnership we have developed the most comprehensive response to the Onshore Intermediaries regulations in the whole of the industry. This new approach provides an unparalleled level of protection to our clients, see our guarantee.
What is the Onshore Intermediaries Act 2014? How does it effect me?
If you currently pay tradesmen through any form of intermediary (agency, payroll provider or labour only supply sub-contractor) then you need to be aware of the Onshore Intermediaries Act that was introduced in Finance Bill of 2014. What is it? This new legislation requires that all payments made to any individuals who are subject to supervision direction [...]
Is EEBS an agency?
In this short film, Nick Pilgrim, MD of EEBS talks about the service EEBS provides to the construction industry.
Is it safe to use an intermediary?
In our industry, as in any other industry, not all solution providers are equal. Yes it is safe provided you take advice from a reputable, audited and compliant supplier. Ideally, one who has never had their model challenged by HMRC, who use systems for the safe operation of the Intermediaries regulations written by the UK's [...]
So what will it cost me if I do what they want and convert my tradesmen to Employees?
It is generally reckoned that the additional payroll burden for employing as opposed to contracting is an increase in payroll costs of between 28 -40%. This is made up of, amongst other things: Employers National insurance costs Holiday pay Additional admin costs for dealing with PAYE and employment rights legislation New pension contributions which continue [...]
How does HMRC pick who to investigate?
Each year the Revenue target specific industries for investigation; construction is always on this list. Now using historic online CIS returns they are able to data mine submissions in real-time looking for hallmarks of employment. These include: Sub-contractors with only one employer Sub-contractors who are paid regular amounts Sub-contractors receiving few payments for materials Sub-contractors [...]
How does the Revenue decide if my tradesmen should be employees?
HMRC looks at how you work with sub-contractors, and if: You use self-employed tradesmen without a written contract, You supply the majority of the materials, plant and equipment, You pay them an hourly/daily/weekly rate The sub-contractor cannot demonstrate that he can make a loss as well as a profit, or the sub-contractor cannot demonstrate that [...]
