sub-contracting

[betty swollocks]

Just thought i'd post a message bringing this to peoples attention.

Old mate of mine, kitchen fitter by trade, has just been fined by I.R.Pray for sub-contracting minor work out but not collecting the tax from the invoices produced by his sub-contractors.

Also been fined for not completing the relevent form every month for being a sub-contractor confirming how much tax he should have been deducting, even if this figure is zero the form still has to be submitted -

 

[jl-heating]

ojh dear,

he should of asked for a contractors pack , very easy to do you get all the info you need including forms and cis vouchers etc ..

tax at source its the only way really to protect yourself. also copies of there cis card and insurance to and qualifications for the dates he used them.

every one i work for i have a pack to give them so they have everything.all the above and more..

looks professional and gets you work even if a little more expensive.

 

[Theorysparky]

there are a lot of guys doing by-passing the CIS.

We have a client at the moment who sub contracted for a firm and is being investigated by the tax office.

its not him they are after its the big boys.

 

[Evans Electric]

A lot of guys ignore the CIS scheme, I presume it all catches up with them in the end. I've asked some blokes how they get on with it and they have never heard of it. Some sparks who only ever work for domestic clients are well under the radar. Can't say I blame them TBH.

Deke

 

[Theorysparky]

my accountant and my mates one have both said we should be registered CIS which we are now but its a pain trying to pay the tax

the tax office still havnt got us sorted after 2 months

if a self employed domestic guy gets an investigation he is well in the pooh

 

[batty]

You have got to pay the tax be it at source or at the end of the year. CIS is good at least you don't have to find it.

Batty

 

[mcgaw81]

I am sub-contracting to a large company just now doing kitchens, when i invoice them i have to split my material and labour cost.

They then pay my tax (at 20%), hopefully this will cover most if not all of my tax at the end of the tax yr, this is through the CIS scheme, i would recommend using it.

 

[Evans Electric]

my accountant and my mates one have both said we should be registered CIS which we are now but its a pain trying to pay the taxthe tax office still havnt got us sorted after 2 months

if a self employed domestic guy gets an investigation he is well in the pooh

Not nessessarily Theo, you only have to use the CIS within the construction industry. Any work for a builder,plumber or another sparks is CIS. If the domestic guy works on his own for domestic client , the CIS dosn't apply, but to pay his mate/apprentice/another sparks/ then it would. A lot of my regular customers are printers and legal, so the CIS does not apply. ( And a lot simpler it is too)

Deke

 

[Theorysparky]

Not nessessarily Theo, you only have to use the CIS within the construction industry. Any work for a builder,plumber or another sparks is CIS. If the domestic guy works on his own for domestic client , the CIS dosn't apply, but to pay his mate/apprentice/another sparks/ then it would. A lot of my regular customers are printers and legal, so the CIS does not apply. ( And a lot simpler it is too)Deke

thats wot i meant thanks for spotting the error