CIS tax questions

[donnk]

12 hours ago, deezyboy said:

Ok I will get that sorted.

i still find it bizarre (I probably don’t understand enough) as to why they have taxed me? I pay my own taxes etc and haven’t signed up to the scheme.

 

it has taken all the profit out of the job and made it not worth it!

They dont have a choice and are breaking the Law if they DONT stop the CIS.

 

You havent actually lost anything as its tax you will be paying anyway any surplus HMRC will return.

[deezyboy]

Thank you everyone for your help.

 

i admit that it’s somethint that I naively haven’t even heard of before (or perhaps paid any attention too maybe) so a lesson to be learnt. 

I agree with above comment regarding bumping the quote up by 20% minimum.

still undecided as to whether I should re-invoice to include the separate items, plant hire etc or Whether my cash flow is happy enough to keep the original invoice as it then gives me a larger amount of ‘paper money’ to pay off my tax bill at Christmas time! Cheers

[donnk]

you are probably too late to re-invoice as CIS has to be paid by the 5th on the following month.

[struie]

What happens if the main contractor is the baptiste church,ie,money raised by charity,donations,etc,for a new church.Did felling work,and same applies as deezy got 30% deducted from invoice.

[donnk]

makes no difference they just don't pay any tax!

 

Just register for CIS and you will be on 20%.

[ChunksBigBro]

Wad the baptis church the CLIENT/EMPLOYER/OWNER or MAIN CONTRACTOR? 

 

Makes a difference

 

-mrs miggins owns a house or commercial property

 

-AJ  contracors are brought in to build an extension

 

-TT Tree works are brought in to cut down trees for the build

 

mrs miggins is not involved in cis, AJ & TT are

[struie]

was contracted from the very start,ie a field with 3trees to fell,log & chip etc.no mention from the word go about cis or any related deductions,had my accountant chase it up,site manager duckin n divin.

[struie]

13 hours ago, donnk said:

makes no difference they just don't pay any tax!

 

Just register for CIS and you will be on 20%.

dont see how that gives them free gratis to deduct 30% from invoice.

[Gary Prentice]

2 hours ago, ChunksBigBro said:

Wad the baptis church the CLIENT/EMPLOYER/OWNER or MAIN CONTRACTOR? 

 

Makes a difference

 

-mrs miggins owns a house or commercial property

 

-AJ  contracors are brought in to build an extension

 

-TT Tree works are brought in to cut down trees for the build

 

mrs miggins is not involved in cis, AJ & TT are

How does that work then? Who is with-holding and passing on the CIS element to the taxman?

[Gary Prentice]

2 hours ago, struie said:

dont see how that gives them free gratis to deduct 30% from invoice.

Someone has to be the main contractor and responsible for ensuring that everyone they use are ponying up their tax. The whole CIS is designed to ensure that what's owed is payed. 

 

I think that the CI scheme came about because too many people in construction were evading tax, so it became a case of the main contractor becoming responsible for collected it at source.