Faster payments: how builder payouts work

We're moving to a new payment system that isn't live yet. Until we email your Beams account owner to confirm your payments have switched over, keep sending invoices the old way.

How it works

When the new payment system goes live, here's how it will work:

1. Mark the milestone complete on the platform and upload your photos and certificates, as you do now.
2. The customer has 7 working days to approve or raise an objection. See Milestone evidence and approvals.
3. Once they approve, we take off the Builder Fee and send your payment to your bank. If you're VAT registered, it includes VAT.

It usually arrives within one working day. No invoice, no payment run, no chasing.

Your first payment is the exception. Stripe holds the first payout to any new account while it finishes its checks, so it can take up to 14 days to reach you. After that, payments arrive within a working day.

When it starts for you

We're moving builders across one at a time. We'll email your Beams account owner with the date your payments switch over. Until you get that email, keep submitting invoices exactly as you do today, even if you've already set up your payouts account.

From the date you switch over, two other things change. We stop deducting CIS. And if you're VAT registered, we pay VAT to you instead of using the reverse charge. The VAT and CIS sections below explain what's changing and why.

Set up your payouts account

If you haven't done it yet, do it now. It takes about ten minutes.

1. Log in and go to Payouts in your settings: beamsrenovation.com/app/builders/settings/payouts
2. Click the link to Stripe's onboarding form.
3. Fill in your details and submit.

You'll need:

• Your company number, if you're a limited company
• Your business address
• Full legal name, date of birth and home address for each director, anyone who owns more than 25% of the business, and any senior manager who runs it
• The bank account you want to be paid into, in the name of the business on your Builder Agreement
• Possibly a passport or driving licence

Payments are handled by Stripe, a regulated payments provider. By law it has to verify who it's paying before it can send money. You enter your details on Stripe's form, not ours, and Beams doesn't see or store your ID documents.

VAT: what's changing

The old way. If you're VAT registered, you may have been invoicing Beams under the domestic reverse charge. Your invoice showed no VAT, and Beams accounted for it to HMRC.

The new way. Once you've switched over, the reverse charge no longer applies:

• If you're VAT registered, we pay the VAT to you with each payment. You then account for it to HMRC on your VAT return.
• If you're not VAT registered, nothing changes. We don't pay VAT to you. Beams pays it to HMRC, and you have nothing to do.

Why. The reverse charge only applies to payments that fall under CIS. We're no longer treating payments through Beams as CIS payments (see below), so the reverse charge falls away too. The work is your supply to the customer, so the VAT on it is yours.

What to do. If you've been using the reverse charge, tell your accountant about the change before your first payment on the new system, so your VAT return picks it up. If you become VAT registered, or deregister, tell us straight away so we pay you correctly.

CIS: what's changing

The old way. Beams deducted CIS from some builders' payments and paid it to HMRC.

The new way. Once you've switched over, we don't deduct CIS from anyone.

Why. We've reviewed this with our accountants. Beams isn't your contractor: the customer chooses you, the HIC is between you and the customer, Beams isn't a party to it, and the customer releases each payment. So CIS doesn't apply to payments through Beams.

What to do. Deductions we made under the old system stand. They've been paid to HMRC in your name and still count towards your tax bill. From now on, you're responsible for the full tax and National Insurance on what you earn. If you've relied on CIS deductions to cover your tax bill, talk to your accountant about setting money aside.

See what you've been paid

Open any project in the Beams app to see every payment, the Builder Fee and what you received.

If you get stuck

Email build@beamsrenovation.com and we'll help.

Common questions

Do I have to do this?

Yes. In time this will be the only way we pay builders. If you have concerns, email build@beamsrenovation.com and we'll talk it through.

Do I still send an invoice?

Not once you're live. The customer's approval triggers your payment. Until you get your confirmation email, keep invoicing as you do today.

Will my payments change?

Yes. You'll be paid faster and without sending an invoice. We won't deduct CIS. And if you're VAT registered, VAT is added to your payment instead of being handled under the reverse charge. Your payments will be bigger, but the VAT part is yours to pay to HMRC.

Do I need to be registered for CIS?

Not for jobs you win through Beams. You may still need it for other work where you're a subcontractor.

Does the customer pay more?

No. Their price doesn't change.

What about change orders?

When a change order is approved, the amount is added to your remaining milestones and paid the same way.

What happens to a project I'm halfway through?

Nothing changes on site. Once you're switched across, your next approved milestone is paid the new way, straight to your bank, with VAT and CIS handled as above. Payments made before you switched over aren't affected.

Why has my first payment taken longer?

Stripe holds the first payout to any new account while it finishes its checks. It can take up to 14 days. After that, payments arrive within a working day.

I'm a sole trader and don't have a company number

Select sole trader on Stripe's form. It will ask for your personal details instead.

How long does verification take?

Usually minutes. If Stripe asks for a photo of your ID, it can take a day or two. The form tells you if anything else is needed.

Is this a credit check?

No. It's an identity check and doesn't affect your credit file.

How do I change my bank details?

In the Payouts section of your settings. Never send bank details by WhatsApp or text, to us or anyone else, and treat any message asking you to change them as suspicious.

Does it cost me anything?

No. There's no charge for receiving your payments.