How Gabem CIS and Solo work for Self-Employed

Gabem CIS is geared to those self-employed in the construction industry, and Gabem Solo is for all other self-employed workers. Both offer legitimately self-employed contractors the benefits of lower tax, and are safe solutions in this complex area.

How they work for contractors

• Contractors deemed to be self-employed will be paid through CIS (for construction assignments) or Solo for other assignments

• We discuss each assignment with the individual to determine their employment status and the appropriate payment option

• If the assignment does not meet the HMRC rules for self-employment, the contractor can be paid through Gabem Umbrella

• Operative has a ‘contract for services’ with GML for each assignment

• We handle contracts, invoices, and purchase orders with the agency

• For CIS, Gabem deduct the 20% tax on account.

• For Solo we do not deduct tax on account, so the contractor must make provision for paying all necessary tax and NI at the end of the tax year

• In both CIS & Solo, contractors must arrange for:
  • Class 2 NIC (currently £2.40/week)
  • Year end tax return to HMRC
  • Expenses – claimed at year end
  • Own Public Liability insurance
    
• With each payment advice we show the amount that the contractor should set aside to cover the likely year-end tax liability

• We offer ExpenseBox as an efficient service for scanning, cataloguing, and managing expense receipts for presentation to HMRC.

• 'Salary sacrifice' pension option available with 'double benefit' - every £10 gross sacrificed = £11.28 into pension, with a net cost to the individual of only £6.70

• Access to Mortgages and other FS products

• No charge for changes of agency or personal details

• Same-day faster payments or CHAPS direct to their bank account

• Free text-message service to confirm amount paid on payday

• Online submission of rates and hours

• End-of- year documents included in the package

• Optional tax return service.

What we deliver through our self employed options

• Gabem discusses with operative whether the assignment meets the HMRC self-employed criteria

• Operative must have a UTR – GML checks with HMRC

• If in construction, operative must also be registered under CIS (deducted status)
  
• Invoicing and payment process to work with agencies’ own processes

• Gabem margin is £20

• In CIS Gabem deducts 20% tax on account, and remits it to HMRC

• Operative can obtain Public Liability insurance through Gabem (£2/week)

• Operative can take Personal Accident cover (£2.50/week)

• Operative can use the Gabem ExpenseBox se rvice to manage their expenses

• Gabem provides indication of tax liability on the remittance advice, for each payment made.