They took the 20% Tax out my cheque......Grrrr

[Mac McLennan]

First time I've had this in 11 years. Done some work on a building site and when the cheque came back it was 20% shy of what it should have been. I normally pay my own tax being self employed (not vat registered). Usually only provide my UTR number to the company I'm working for.

 

Problem is I got a guy in doing some stump grinding and will actually end up out of pocket on that payment which will be 20% less than I pay him.......Grrrrrrrrr

 

I'm gonna chase this up. Will let you know how I get on.

[Steve Bullman]

First time I've had this in 11 years. Done some work on a building site and when the cheque came back it was 20% shy of what it should have been. I normally pay my own tax being self employed (not vat registered). Usually only provide my UTR number to the company I'm working for.

 

Problem is I got a guy in doing some stump grinding and will actually end up out of pocket on that payment which will be 20% less than I pay him.......Grrrrrrrrr

 

I'm gonna chase this up. Will let you know how I get on.

 

are you registered with the tax office for this system? i think it might be changed now, but i have worked in the past under the CIS scheme....but they cant pay you that way if they dont have your CIS details.

 

like i said, i think they changed the system somehow but im sure you have to be registered for it one way or another, and you would have known about this prior to the work i'd have thought

[Rupe]

I've just (yesterday) registered for CIS because of this.

 

If the work you did was for the construction of something then you should be cis registered. You won't be out of pocket cos the moeny is still yours but has gone towards your tax.

 

I can see that as it was unexpected that it screws your cash flow but its not the end of the world. Get registered and charge a bit mor enext time, also you have to seperate out the labour and then they only deduct 20% from that portion of the invoice not the whole amount.

 

For years I've got away with it but invoicign for tree surgery not felling/stumpgrinding etc (even though I've done lots of site clearance) and we always got paid but more recently some companies have clamped down and even if it is tree surgery if its for the beneift of the constrcution process then you need cis.

[niftysteve]

the tax they have deducted will be taken off your end of year tax bill when you submit the deduction sheet they should provide you with

 

 

rupe typed quicker than me

[Rupe]

...but they cant pay you that way if they dont have your CIS details.

 

 

 

Yes they can. Theyt can emergency deduct it without tellign you. Mine was dedcuted 30%. You get a tax certificate which is like a money order, it goes towards your tax, so no worries.

[Mac McLennan]

Cheers must have sent my thread at the same time Rupe.

[Steve Bullman]

i dont mind the system to be honest....you soon forget about it, then when tax bills comes round you have a few hundred quids worth of credits to apply that you forgot about

[Steve Bullman]

I'm not in the CIS scheme as far as I know Steve. I thought tree surgeons were classed as forestry.

 

its a grey area that one mate, but its been discussed over and over...no getting off it im afraid.

[Rupe]

its a grey area that one mate, but its been discussed over and over...no getting off it im afraid.

 

 

Even if your sayign you are forestry you need to be cis if you are cuttign down forests for construction work.

 

No tree surgery is not forestry and if the end goal of the work is construction then its covered by cis, no getting round it.

 

Once the contruction is done, if you were then plantign trees or trimming them to make the place look nice then that might be exempt.

 

 

Lesson learned here is: Mark up your stump grinding mate by more than 20%!!!

[Mac McLennan]

Lesson learned here is: Mark up your stump grinding mate by more than 20%!!!

 

Yep, I shall call it a learning curve.