CIS deductions

[BrendanTreeFeller]

You need to add more than 20% on to your quote to get paid what you wanted in full after getting CIS taken from you.

 

Example:

 

You want to charge £100 for a job, then find out they will take CIS from you, so you add 20% onto your £100 quote to make £120.

 

You do the job, invoice them for £120/-, then they take 20% CIS from your invoice amount.

 

20% of £120/- is £24/-, so you're left with £96/- for a job you wanted £100 for !

 

In order to get paid your £100, you'd had to have added 25% to what you want to get paid, therefore you should charge £125/- in this example.

 

You then get CIS of 20% of £125 taken from you, which is £25/-, then you're left with £100/- ! Simples! (Not)

[Mark Bolam]

You need to add more than 20% on to your quote to get paid what you wanted in full after getting CIS taken from you.

 

Example:

 

You want to charge £100 for a job, then find out they will take CIS from you, so you add 20% onto your £100 quote to make £120.

 

You do the job, invoice them for £120/-, then they take 20% CIS from your invoice amount.

 

20% of £120/- is £24/-, so you're left with £96/- for a job you wanted £100 for !

 

In order to get paid your £100, you'd had to have added 25% to what you want to get paid, therefore you should charge £125/- in this example.

 

You then get CIS of 20% of £125 taken from you, which is £25/-, then you're left with £100/- ! Simples! (Not)

 

 

You're 100% correct Brendan, but remember I've just knocked a lump off my final tax bill.

I'm a bandit, just not a greedy one!

 

 

Sent from my iPhone using Arbtalk

[skyhuck]

If there was a site clearance job you really, really, really, really, really, really, really, really, really wanted, more than any other job you'd ever wanted, ever, and your entire universe depended upon it, and you could retire to the Dutch Antilles and drink Mojitos into a ripe and content twilight of your years....

 

But....

 

The main contractor didn't recognise your letter, and, after spending more time than it took to crack the Enigma code trying to get through to the CIS helpline (I think their actual target time for customer contact is measured in multiples of Enigma code breaking periods) and, when you did get through, the bowler hat said "no mate, that was nearly 20 years ago, we won't give you an updated copy, we don't work like that these days!"

 

Would you:

 

(A) sack the job off

(B) register and cop for 20% up front

© not register and cop for 30%

 

 

B, but I would sulk

[kevinjohnsonmbe]

I went through this a while back.

A groundworks company we've done plenty of work for and have a great relationship with told me that going forward CIS would be unavoidable. It was definitely enabling works for construction.

I reluctantly signed up. I just load 20% onto the quote.[emoji106]

They're not exactly a bundle of laughs on the phone are they Kevin?

I reckon they have a bouncer in their office who punches anyone in the face if he hears the slightest tone of happiness in their voice.

 

 

Sent from my iPhone using Arbtalk

 

 

FI's the lot of 'em! Just punching a card and riding the Public sector gravy train. I'd flog the lot of 'em.

[kevinjohnsonmbe]

You need to add more than 20% on to your quote to get paid what you wanted in full after getting CIS taken from you.

 

Example:

 

You want to charge £100 for a job, then find out they will take CIS from you, so you add 20% onto your £100 quote to make £120.

 

You do the job, invoice them for £120/-, then they take 20% CIS from your invoice amount.

 

20% of £120/- is £24/-, so you're left with £96/- for a job you wanted £100 for !

 

In order to get paid your £100, you'd had to have added 25% to what you want to get paid, therefore you should charge £125/- in this example.

 

You then get CIS of 20% of £125 taken from you, which is £25/-, then you're left with £100/- ! Simples! (Not)

 

 

I think (respectfully) you've maybe missed the point.

 

The price you quote, the amount you lose to CIS and the affect it has on yr end of year SATR all completely equal out - if you're cosher - there's actually no need to change anything.

 

Example:

 

You quote a job at 1k

 

You lose 20% (or 30 %) to CIS

 

You get 800 (or 700) squid

 

End of year SATR (you've already paid yr tax) if you had the 1k after the job you'd lose 200 squid to HMRC.

 

It all equals out, it's just that someone else has forwarded (not paid because it's your money) your tax in advance.

[kevinjohnsonmbe]

B, but I would sulk

 

 

It's the only sensible option! 😣

[Rich Rule]

90 days is a bit harsh for a subbie.

 

I make it clear from outset no UTR number no get paid. Everyone who works in the game knows the crack anyway. Most subbies tell me they get a good wedge back each year from the CIS anyway.

 

But a Utr number is not indicative that you are register under the CIS scheme.

[kevinjohnsonmbe]

But a Utr number is not indicative that you are register under the CIS scheme.

 

 

Recording a sub contractors UTR just makes life easier for HMRC to cross reference the engaging entity's gross payments to the recipient's SATR (or lack of.) It's just a link in the chain.

[Rich Rule]

I know Kevin.

 

I was quoting the point made by donk. One minute the thread was discussing CIS next minute ...

 

No UTR no pay.

[kevinjohnsonmbe]

I know Kevin.

 

I was quoting the point made by donk. One minute the thread was discussing CIS next minute ...

 

No UTR no pay.

 

Oops soz mate...