CIS Tax Scheme

[Evans Electric]

Hi Spudmeister, its all to do with annual turnover if I remember correctly,

Deke

 

[paulh]

ltd or not it doesn't matter. I work cis all the time and you can't help but pay too much tax. You can't say ok I have paid enough for now don't deduct anymore! I have overpaid cis for the last 3 years and have claimed it back or had it deducted from my corporation tax bill. That's accountant's for yer

To Evans Electric.....Please get your tax checked as you will of been overtaxed if you work cis regular

 

[SLIPSHOD & SLAPDASH]

Heathelect, I'm sure you are aware of this but I've come across a few contractors, two painters in particular, who were having 20% stopped on the whole of their labour. Then the painter was stopping his subbie 20% when he paid him, thus the subbie had been paying twice but they had'nt realised.No he has not. It is correct that a contractor has to stop 20% (normally) of all labour. The 2nd subbie only has one lot of 20% taken. The first subbie has both lots of 20% taken but he collects 20% off his subbies to balance it out so each only has paid 20%. The loser is temporarily the first subbie, who has to loose his subbies percentage until its claimed back in his tax. We used to be in this position until our turnover passed the threshold.

The contract is between you and the builder and does not include the subbies for tax reasons. wrong !

I have had to add this bit in because it would not let me post otherwise X(

 

[thehoodedclaw2008]

Have you seen how much cash the taxman is milking from this scheme? 180 million quid!!!

No wonder I know so many ppl who are complaining about it. Also interesting to see that of the 227,000 that appealed, 185,000 had it updeld. I make that about 80%. There's a story about it on Contract Journal's website. Unfortunately I can't post it because I'm new and forum won't let me but it's making me angry just reading it.

 

[a1]

Welcome to the forum "Thehoodedclaw2008", I believe I set it to 5 osts before a URL can be posted.

If you go into the "Introduce Yourself" forum and wait for it....

...'Introduce Yourself' , give a few replies, then you'll be able to post it.

 

[Apache]

Hello and welcome. Do as Admin says and then you can post links, like this

Introduce yourself



Applaud Smiley

Why 'the hooded claw'? FGTH reference?

 

[Mr Sworld]

Hello and welcome. Do as Admin says and then you can post links, like thisIntroduce yourself



Applaud Smiley

Why 'the hooded claw'? FGTH reference?

A 'Frankie Goes To Hollywood' reference?

The 'hooded claw' is a The Perils of Penelope Pitstop reference!

 

[Apache]

A 'Frankie Goes To Hollywood' reference?The 'hooded claw' is a The Perils of Penelope Pitstop reference!

Frankie Goes To Hollywood - The Power Of Love LyricsI'll protect you from the hooded clawKeep the vampires from your door

Feels like fire

I'm so in love with you

Dreams are like angels

They keep bad at bay-bad at bay

Love is the light

Scaring darkness away-yeah

I'm so in love with you

Purge the soul

Make love your goal

*The power of love

A force from above

Cleaning my soul

Flame on burn desire

Love with tongues of fire

Purge the soul

Make love your goal

I'll protect you from the hooded claw

Keep the vampires from your door

When the chips are down I'll be around

With my undying, death-defying

Love for you

Envy will hurt itself

Let yourself be beautiful

Sparkling love, flowers

And pearls and pretty girls

Love is like an energy

Rushin' rushin' inside of me

*(Repeat)

This time we go sublime

Lovers entwine-divine divine

Love is danger, love is pleasure

Love is pure-the only treasure

I'm so in love with you

Purge the soul

Make love your goal

The power of love

A force from above

Cleaning my soul

The power of love

A force from above

A sky-scraping dove

Flame on burn desire

Love with tongues of fire

Purge the soul

Make love your goal

I'll protect you from the hooded claw

Keep the vampires from your door

Was my first thought

 

[heathelect]

Hi Heathy , when you say thats correct, did you mean the painters paying twice ? Why do you have to claim some back ?:| I never have to claim any CIS tax back , you're not paying twice as well , are you :_| It is logical that if you are claiming back, then you are overpaying.Deke Guiness Drink

Yes i pay twice indirectly, 20% is deducted from each invoice i submit to the electrical contractor i do work for, and then i deduct 20% from my subbies invoice to me, and pay that to the tax office, so ive paid his 20% twice i then claim his 20% back at the end of the year.Hope that clarifies the situation, regards dave Guiness Drink

 

[RookieDI]

just to add my two cents,

I think if your annual turnover for LABOUR only is

 

[RookieDI]

found some more info here

 

[Evans Electric]

Dave & Slips,

I went into this in 1999 . I have a letter from the Economic Secretary to the Treasury via my MP which states the following.

There are two transactions, one between me as a SUB-CONTRACTOR and the main contractor/builder who deducts 20% from my labour only.

The second transaction is between me as a CONTRACTOR and my subby. I deduct 20% from my subbies labour figure. The builder has no contract with your subby and should not deduct tax from him, THAT IS YOUR [/b]DUTY UNDER THE SCHEME.

There is no need to pay your subbies tax twice and all this stuff about claiming it back. YOU ARE PAYING TOO MUCH ,NOT ME , THINK ABOUT IT GUYS, ONLY YOUR MONEY IS TAXED ,THEN YOU DEDUCT WHEN YOU PAY YOUR SUBBY

 

[heathelect]

Dave & Slips,I went into this in 1999 . I have a letter from the Economic Secretary to the Treasury via my MP which states the following.

There are two transactions, one between me as a SUB-CONTRACTOR and the main contractor/builder who deducts 20% from my labour only.

The second transaction is between me as a CONTRACTOR and my subby. I deduct 20% from my subbies labour figure. The builder has no contract with your subby and should not deduct tax from him, THAT IS YOUR [/b]DUTY UNDER THE SCHEME.

There is no need to pay your subbies tax twice and all this stuff about claiming it back. YOU ARE PAYING TOO MUCH ,NOT ME , THINK ABOUT IT GUYS, ONLY YOUR MONEY IS TAXED ,THEN YOU DEDUCT WHEN YOU PAY YOUR SUBBY

Okay then, how can you prove to the contractor what is yours and your subbies tax, they will still deduct 20% from you as you are the person whom they pay(its there obligation).What you do afterwards is not their concern, but it is your obligation to deduct and pay tax on behalf of subbies.

 

[Evans Electric]

Okay then, how can you prove to the contractor what is yours and your subbies tax, they will still deduct 20% from you as you are the person whom they pay(its there obligation).What you do afterwards is not their concern, but it is your obligation to deduct and pay tax on behalf of subbies.

Heathy , I'll give you an example from earlier this year, some warehouse lighting for a property finder. Myself and Ray and Chris did the job. I'm a sole trader. My money is

 

[SLIPSHOD & SLAPDASH]

Mr Evans, Why stop there, just send the main contractor an invoice that lists labour at

 

[SLIPSHOD & SLAPDASH]

And there is nothing wrong in that as long as everything is declared at the end of the year. This means the money sits in your bank account earning you interest.

 

[Evans Electric]

Thats exactly why I challenged them Slips, it should be in our accounts until its time to pay. As I said further back, no other business is treated in this manner.

I take your point about declaring

 

[heathelect]

Heathy , I'll give you an example from earlier this year, some warehouse lighting for a property finder. Myself and Ray and Chris did the job. I'm a sole trader. My money is

 

[Evans Electric]

Deke im gonna have to try this thanks for info , daveGuiness Drink

No probs Dave , just keep your labour figure reasonable, not