IS THE TAXMAN AFTER YOU???

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I sub to another electrical firm and the work is on price, however they also pay me a mileage rate as well. When I invoice them I put a total invoice figure (labour only) less 20% CIS giving a Net figure, this is a sub total. I then add on the calculated mileage giving a payable total.Never had an accountant or tax man question this, been doing this for years.
Ooops , I,m fairly sure its wrong Sharpy, I'll post the paragraph from the CIS booklet they sent out when it started. Be tomorrow now, Oh its tomorrow now, OK later on.

I think its unfair and should go with any materials . The system was carp from day one TBH.

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The other six dwarves are NOT Happy :)
:Applaud :Applaud:D:D

 
As promised Sharpend :-

From CIS Guide for Contractors and Subcontractors. Booklet CIS340. Page 18 Para 2.38

I quote... The deduction DOES apply to any part of a payment that is for subsistence or travelling expenses.

Para 2.39

The deduction does not apply to any part of the payment that is for the cost of the following .:

Materials

VAT

Some crap about the CITB.

I don't think they should deduct from exes but what can you do !!!!

 
Strange that Deke as my accountant has been accepting of the way they have done it although I think he makes an adjustment on the remainder of my fuel expenses for it.

 
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