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Rough Hewn


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It's worth noting that "waste removal" doesn't get deducted at source, so if you're removing waste from a site then whatever you charge for that isn't part of it...

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36 minutes ago, Rough Hewn said:

Had a lovely chat with hmrc last night,
No you're not CIS as an arborist unless...
Felling to clear a construction site.

Ant that is what most of us do on building sites! at the end of the day big firms will be in the scheme, like it or not, if you want to work for them you will have to join it, its nothing to be scared of anyway they take the tax of the job at source, you only pay it once so no one looses. 

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HMRC told me a 7 years ago that I had to take the 20% of any one that I employed to work on the houses I was doing up.I only did up old houses it was not a construction site.

My carpet fitter from that day on only wrote "to supply" on his invoices and not to supply and fit , this ment not paying his 20% on his labour as I was just paying for a product. Otherwise he did not want the work.

My Plumber said no way he pays his own tax...So he up`d his prices 20%, and still he was cheaper than anyone else so I carried on using him.

It is a system that any one man business could do with out, it cost me profit paying more to my plumber and the hassle having to pay other peoples tax was a ball ache doing it once a month, one time I forgot to pay on time and had to drive to there office in Liverpool from Nelson in order to not get fined £100 , I think it cost me close to £100 in diesel and lost wages but I would rather that 100 went any where other than HMRC.

When dealing with HMRC it reminded me of the movie Goodfellas, I told them I was too busy to pay the Tax monthly...They said fuck you, pay me.

I said my business is doubling its turnover every year and I cannot manage there demands at the moment without help...They said...Fuck you, pay me.

I said I was ill and could not currently do the paperwork as I was struggling to do anything...Fuck you,pay me.


I loved being in business and could handle quotes and invoices but my paperwork skills else where were shite and what HMRC demanded of me gave me more stress than any other part of my whole business. When I knew it was the end of my business as I was too ill to run it I just ignored HMRC for the sake of my health , £9000ish is what the £100 and then £200 fines totalled by the time Companys house struck it off. 


And what if a company that took your tax went bust before they paid it to HMRC? do you then have to pay it again?


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There's a pretty sensible way around it- register for CIS 'gross contractor' status. Otherwise known as bona fide contractor.




"You must show HM Revenue and Customs (HMRC) that your business passes some tests. You’ll need to show that:

  • you’ve paid your tax and National Insurance on time in the past
  • your business does construction work (or provides labour for it) in the UK
  • your business is run through a bank account

HMRC will look at your turnover for the last 12 months. Ignoring VAT and the cost of materials, your turnover must be at least:

  • £30,000 if you’re a sole trader
  • £30,000 for each partner in a partnership, or at least £100,000 for the whole partnership
  • £30,000 for each director of a company, or at least £100,000 for the whole company"

Sounds reasonable. The whole point of CIS is to catch out those who say,  "yeah, I'm self employed mate!" and have never filed a tax return in their life.

Edited by doobin
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On 11/12/2018 at 19:22, monkeybusiness said:

It’s charged on labour only - divide your bill into plant hire/fuel/travel etc if you want to reduce what they hold back. 

This is what we do , didn't like it at first but made a hell of a difference come tax time .

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