Just writing that down .
Damned stupid CIS tax Scheme !!
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Cirrus
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My accountant wasn't phased by it or surprised at all so this obviously happens as frequently as night changes into day! I would just give the accountant the letter and let him deal with it - it is what they are paid to do and they know the best way to get it revoked.
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Well the HMRC are a law unto themselves.
I was just listening to the radio, and on came that advert reminding you to pay your self assesment tax account by 31st of January, or you will receive a
I was just listening to the radio, and on came that advert reminding you to pay your self assesment tax account by 31st of January, or you will receive a
One of the things I hate about the cis scheme is the fact that if i send an invoice that includes hotel accommodation and/or travelling costs,the contractor has to deduct 20% of these costs from my invoice total.Another thing,I,m supposed to show the true cost of materials without any mark up.
Rant over!
Regards HZ
Rant over!
Regards HZ
Surely you can put all your materials, accomodation, traveling expenses, etc down as non taxable expenditure and then have labour, materials markup and any other profit element as taxable costs.
That's what I'd do!
That's what I'd do!
You're not doing it right HZ , others will disagree but there was always a disagreement with ,say , employing others and/or expenses.
If you are sub-contracting to a builder ,say, your invoice should present him with the amount of YOUR labour which is subject to 20% tax deduction .
Materials, travel, expenses are all lumped together in another column . HE DOES'NT STOP TAX ON YOUR EXPENSES.
And the biggest thing of all is.......HE MUST GIVE YOU SOME KIND OF STATEMENT SHOWING YOUR DEDUCTION FOR EVERY INVOICE.
I know of numerous subbies , chippies , brickies, who had no statements showing tax stopped, the guy, often an agent or ganger ,dissapears and they are made to pay the tax again because the guy stopped it from their money but never paid it on to HMRC.
I had a constant argument with main contractors , because I employed two subbies but would only present MY OWN labour for CIS tax . Their labour was in with my exes and materials . I would then deduct their tax when I paid them .
Thing is , theres a contract between me and the main contractor and he stops MY tax but has no right or obligation to stop tax from someone subbing to ME ( They're working for me not him )
Many guys in construction , some painters I know of, were paying the tax twice , then saying there was some airy fairy system of claiming it back at year end .
Many don't agree with me , but I've elected to be removed from the stupid system now but you need to think about it , especially the statements from Builder.
If you are sub-contracting to a builder ,say, your invoice should present him with the amount of YOUR labour which is subject to 20% tax deduction .
Materials, travel, expenses are all lumped together in another column . HE DOES'NT STOP TAX ON YOUR EXPENSES.
And the biggest thing of all is.......HE MUST GIVE YOU SOME KIND OF STATEMENT SHOWING YOUR DEDUCTION FOR EVERY INVOICE.
I know of numerous subbies , chippies , brickies, who had no statements showing tax stopped, the guy, often an agent or ganger ,dissapears and they are made to pay the tax again because the guy stopped it from their money but never paid it on to HMRC.
I had a constant argument with main contractors , because I employed two subbies but would only present MY OWN labour for CIS tax . Their labour was in with my exes and materials . I would then deduct their tax when I paid them .
Thing is , theres a contract between me and the main contractor and he stops MY tax but has no right or obligation to stop tax from someone subbing to ME ( They're working for me not him )
Many guys in construction , some painters I know of, were paying the tax twice , then saying there was some airy fairy system of claiming it back at year end .
Many don't agree with me , but I've elected to be removed from the stupid system now but you need to think about it , especially the statements from Builder.
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EE,
Quoting from the construction industry scheme handbook"any travelling expenses(including fuel costs)& subsistence paid to the contractor should be included in the payment from wich the deduction is made"
"the subcontractor should supply the contractor with evidence of the true cost of materials..........
page12 Construction industry series IR14/15(CIS) regardsHZ
Quoting from the construction industry scheme handbook"any travelling expenses(including fuel costs)& subsistence paid to the contractor should be included in the payment from wich the deduction is made"
"the subcontractor should supply the contractor with evidence of the true cost of materials..........
page12 Construction industry series IR14/15(CIS) regardsHZ
Interesting HZ , never did that !!! Don't see how you can be taxed on expenses and mats .
I just seperated my labour figure as ....... Sum liable to CIS tax .
As said above ,main thing was not to include my subbies in the figure.
I'm out of it now , they keep trying to fine me for not sending nil returns ,when I put it on hold . They wait 6 months till you forget , then fine you for not returning , so no more.
Oh and welcome to the Forum !! :Salute
I just seperated my labour figure as ....... Sum liable to CIS tax .
As said above ,main thing was not to include my subbies in the figure.
I'm out of it now , they keep trying to fine me for not sending nil returns ,when I put it on hold . They wait 6 months till you forget , then fine you for not returning , so no more.
Oh and welcome to the Forum !! :Salute
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Good for you Paddler..... I hate that deduction too...... a lot of guys like it ... strangely ...subbies mostly, as most of their tax has been paid by year end. Can't see it myself .
They kept trying to get a colleague, Bob the Breakdown, to register for CIS .
They said ....you are an electrician.. you must use the scheme.... he said but I don't work in construction ..... I'm industrial...... its called The Construction Industry Scheme.
They gave up in the end .
They kept trying to get a colleague, Bob the Breakdown, to register for CIS .
They said ....you are an electrician.. you must use the scheme.... he said but I don't work in construction ..... I'm industrial...... its called The Construction Industry Scheme.
They gave up in the end .
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