Income Protection

We specialise in Mortgage Advice for Subcontractors paid via the Construction Industry Scheme (CIS)

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Why is Income Protection important for subcontractors?

Let me ask you to consider this question: what would happen if you were ill for a day or two?

I guess you’d lose the income you would otherwise have earned on those days, right? Or at least a portion of it if you’d got in a subcontractor to keep the job ticking over.

What if you were ill for a week or two? Would you have enough savings to pay all the bills if there was no new income being generated?

Now imagine if you were ill for a couple of months, or a year.

A recent study of almost 32,000 workers in the UK revealed that employees lose, on average, 30.4 days of productive time annually due to sick days

You might think I’m young, fit, I don’t get sick. But among the most common reasons for long-term absence are not just the acute medical conditions like heart disease or cancer, but musculoskeletal injuries, stress and back pain. As self employed contractors, those last three are not uncommon conditions.

If you get an injury or do become too ill to work for a prolonged period of time then Income Protection can provide you with a monthly income to keep you going financially.  It’s undoubtedly the one protection policy that every working person should consider – and for contractors it’s going to be something you need to arrange for yourself.

What is the benefit?

Typically income protection can cover 60% of your combined monthly income from salary, and dividend based on self assessed profits (not CIS gross income). But the level and period of cover is flexible to match your individual circumstances.

The faster you want to be able to draw on the benefit, and the higher you want that payment to be each month, the more you’ll need to pay as a premium.

It’s a balance, but one you get to set.

Why would you want it?

Income protection can cover your mortgage or rent, your food bills and regular bills like utilities, credit card repayments, contract van rental, council tax, so that you can rest and focus on getting better and back to work, rather than having financial stresses impact your recovery.

Claims are medically assessed and your doctor needs to certify that you are not fit to be able to do your job.

Normally there is a period of time before the cover kicks in – the ‘deferred period – so you might claim nothing for the first four weeks and then get a certificate to initiate payments from the start of the second month you are incapacitated.

What are the risks of not having it?

Statutory sick pay (SSP) is £94.25 per week if you’re too ill to work but it only covers people who are employees, and only for a maximum of 28 weeks. If you are self-employed, which most contractors are, then you are not eligible for SSP. As a business owner, self employed contractors can use Income Protection to cover a proportion of their income, including monthly salary and dividend.

Payment is monthly and can be made through the company or paid ‘after tax’ by you. If you pay the premiums ‘in person’ then any payout you receive when needed is tax free.

If you prefer to pay the premiums from your company account, the premiums are offset against company profit meaning your tax liability is decreased. For this reason, if you pay the premiums this way then the payout becomes taxable income.

Make your choice depending on your financial commitments and your attitude to risk.

There’s much more to choosing an insurer than cost alone so do some research and make sure the terms and provisions are suitable for your circumstances. You do want to tailor your cover to suit your needs.

For that reason, review your cover every year. Does it need adjusted for a change in circumstances? A bigger mortgage, a new baby, or just to reflect an increase in the general cost of living. You can adjust your cover when you want.

What should I look out for?

Think about the term of cover. If you were to be unable to work again then the earliest you can access pension savings is age 55, so plan for the worst and hope for the best.

Some policies will also insist that if you are fit for some jobs, just not your main occupation, then it won’t pay out. Imagine you’re a roofing contractor who can’t go up ladders, but you could work at a till in a supermarket.  You’re a skilled contractor, so don’t try to go for the cheaper premium and be caught out when it’s too late. When you do your research search for ‘contractor income protection’ and make sure the cover is explicitly for you ‘own occupation’.

Source:
https://www.consultancy.uk/news/15551/sick-staff-cost-british-firms-77-billion-annually-in-lost-productivity

We Say Yes To CIS

Less than 1 year self-employed

5% Deposit

Less than 3 years in the UK

High day-rate with low net profit

CIS Mortgage Advice
5.0
Based on 42 reviews
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Matty D
Matty D
20:44 14 Feb 20
From the minute I was contacted by David from CIS Mortgages the service I have received has been second to none. A... special thank you to Rhodri who has been nothing but top notch in securing me a great rate mortgage and keeping me in the loop at all times; very professional. If you are CIS and looking for a mortgage, this is the place to go, I would recommend this company to anyone. Many thanks.read more
Alastair grove
Alastair grove
12:54 13 Feb 20
My advisor lee Hawkins has done an amazing job, just the final forms to send in for the mortgage agreement and done, we... was let down by another advisor who didn't know what she was doing with Cis and gave us false hope saying we could get one then saying no. These guys get all the paperwork together first and then put together your package.... Highly recommended if you are Cis don't go through wasted months like I have with a "normal" advisor. Great job lee keep up the good work, let's see what the next few weeks bring.. Alastair and Ashleighread more
Rhiannon Bangs
Rhiannon Bangs
19:42 28 Jan 20
My partner used this company, as a self employed person he found it hard to get a mortgage, but with the help of cis... mortgage and the very helpful adam we are ready to move into our first family home. The whole process was easy such brilliant service, very thorough and he was kept informed through out the process. Thanks again to Adam.read more
belayet hussain
belayet hussain
13:26 28 Nov 19
I would highly recommend CIS Mortgage 100%. David Sharpstone & his team went above and beyond to helped me secure... both my mortgages. He always kept me updated with the process and developments. Buying house is probably one of the most stressful times of your life, However David always reassured and guided us throughout the entire process. understanding, caring yet always remaining professional and supportive. Brilliant I cannot THANK him enough. THANK YOU!!read more
paul montgomery
paul montgomery
10:15 12 Nov 19
Can’t give nothing but praises and thank you to David and CIS Mortgage’s from very first conversation to being... offered a Mortgage he and his company kept me informed of every process and explained in every detail of application and history required with nothing but first rate professionalism throughout I will use him in future and recommend him to anyone in the same difficult situation I was in, as I was given bad advice before this company which gave me the feeling would never get on property ladder now David has dealt with my case will be moving into my first home in couple months thank you again David and CIS team. If you’re in difficult situation or just need advice please just call CIS Mortgage’s. Paul.read more
Becca larkin
Becca larkin
11:19 18 Oct 19
If you are thinking about using CIS mortgage, 100% do it! I can't explain how happy my partner and I are with the... service. After seeing a previous mortgage adviser who told us we couldn't get a mortgage, David, within days got us a mortgage. So pleased with the outcome and it was so refreshing to speak to someone who completely understands CIS through and through. Amazing!!!read more
Ruaridh black
Ruaridh black
13:56 24 Aug 19
Went directly to a bank for a mortgage with my cis statements and they didn't even consider giving us the mortgage. Me... and my wife were gutted as it was our dream home and one we could start a family in together. Thanks to David here we managed to get a mortgage and got the house we wanted! We are now expecting our our first child and in our dream home! Wouldn't have been possible to get the house/mortgage without them so very appreciative. Fast and professional and would recommend them to anyone who works under the CIS payment scheme and are self employed.read more
P. Jiten
P. Jiten
09:56 17 Aug 19
For CIS self employed people this is the best company in UK. Got mortgage in principle certificate after submitting... required documents and mortgage approved in 10 days after submitting file. Hassle free process throughout and any question or query promptly answered. David and Lisa are amazing people to work with.read more
Michelle Perrin
Michelle Perrin
09:28 17 Aug 19
My husband and myself have been dealing with David since our first property purchase in 2012. David has a vast amount... of knowledge, has always put us at ease and answered our questions throughout the process. David is great to deal with, always goes above and beyond and we have already recommended him to several of our friends and family, one of which is nearing completion of their first home. Always fantastic service, highly recommend CIS Mortgage Adviceread more
Veronica Grosu
Veronica Grosu
09:36 12 Aug 19
Fantastic service from start to finish. David made it simple and effective for us. We are very happy with the outcome.... I would definitely recommend!read more
Rob
Rob
09:23 18 Jul 19
David has been faultless from the beginning and helped me and my girlfriend out loads and without him we would not be... moved into the house we are in now. He understands the difficulties of being a CIS worker with mortgages and gives you the best advice he can and is very quick on the ball at getting stuff sorted. My case I appointed him for was more complex than most I would say due to being self employed and having a limited company but he had no trouble with achieving me a great mortgage deal and borrowing amount with the information I gave him. It has been a pleasure to deal with david through buying this property and I shall definitely be using him on any future purchases or remortgages. Nothing was ever to difficult for him and he was always just at the end of the phone when you needed him even after his working hours he went above and beyond by helping me with help to buy also.read more
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