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

[Stephen Blair]

No its not business Stevie, they are still paying the 20%, and they have to pay it monthly or quaterly direct to the inland revenue (on your behalf) and there are huge fines for non compliance. It's not so they can hold on to the money. I bet they would much rather not deduct it, they could save on accountants and paperwork!

 

if you are a big builing site and are paying out a lot in wages every week, 20% is a lot of money, its good for cash flow and its in their account not yours, i am not meaning they are unlawful, but if they have something of yours then they have power over you. I can only give input on my personal experiences over the years, i have always found the letter suited them, i would just get one faxed from my accountant and they were fine, most never even asked about cis as tree cutters dont really fall into their categories on their little sheets.

[Rupe]

I know what you are saying, but they don't really have something of yours do they? They give you a certificate and its paid towards your tax. Maybe you are a good boy and pay your tax in advance like Lee, and so they don't need to deduct. But most labourers arn't that well behaved.

 

And yes, we don't really fall into the catagory, and yes there are ways round it, but construction companies employ people to manage these things and if the company in question employs a jobsworth then they will tax you. At the end of the year you houl dbe no worse or better off either way.

 

Followign the law to the letter, "if the work is for the overall objective of construction then CIS is required". If you can get round that then fine no worries.

 

They pay many bills without CIS (stationery, coffee etc) so its not un-feasable for them to put your bills through with those, but thats not how its supposed to be and many seem to be clamping down now.

 

For me. I'm so bad at paying tax that I'm actually pleased they deuct it, its like a little savings account for me!

[J.D]

Yes, it means they would pay quicker and it makes thme feel more assured that they are not going to get fined. You might also get work over non cis firms and be able to charge a bit more while your at it.

 

Thanks Rupe, Is it just a matter of a phone call to the I.R to get this sorted ?

 

 

Dave

[Albedo]

It's sounding like I might have to retract my accusation of "not rightness" SWB and replace it with "you might be rightness" . smiley, (hard to do them in quick reply on my crappy tinternet connection)

[David Riding]

I have a letter from my local tax office saying my work is agricultural and as such exempt, its dated 1999.

 

I just send a copy of it with the invoice and always get paid in full.

 

 

Any work that is completed directly for the completion of construction should always be completed by a sub-contractor CIS registered, a company that did not deduct it would have huge fines to pay as it is tax law with out exemption. I have done work for United Utilities when they have being laying pipe and been deducted 20% and not had a deduction when doing maintenance work. I know lots of you have been payed in full after letters etc but as Rupe says if the inland revenue caught wind of this they would come down strong on the main contractor with huge fines. The main contractor are told what to do by the inland revenue and they have to follow their procudure. Murphy pipelines even deduct on plant as any plant with an operator comes under CIS. After 3-5 year you can apply for excemption if your accounts have been in order for all the years you have been CIS registered. I like being under CIS as at the end of the year in compensates my none deducted work and I have nowt to pay

[Rupe]

I'm right and SWB is right in that it can be got round! And Lee confirms this it seems.

 

From IR website

 

Every business is different. If you've got any questions about whether your business is affected by CIS you can call HMRC’s CIS Helpline on Tel 0845 366 7899 (open from 8.00 am to 8.00 pm, seven days a week).

[Stephen Blair]

if they took 20% of my profit on the job then that would be fine by me rupe, but they dont, they take it on the total, i just dont play that way mate, my money is my money, i have sat their argueing with probably one of the biggest companies in the countries jobs worths about payment and money, and when i walked off site i was asked by the owner of the site why i wasnt starting now, i told him why, 30 days payment and cis, he said wait there and headed off, came back 5 mins later and said just start and you will get paid when you finish, job done.

[Rupe]

I have a letter from my local tax office saying my work is agricultural and as such exempt, its dated 1999.

 

I just send a copy of it with the invoice and always get paid in full.

 

Your work isn't agricultural if the end result is building a house? How is building a house agricultural?? It may have been in 1999 but its not now. If you get away with it then good on you, like I say it can be got round, its up to who pays the bill though.

[Albedo]

That confirms my suspicions Rupe. Everybody is right including me. In fact I'm especially, more right, as I said it first!

[Rupe]

if they took 20% of my profit on the job then that would be fine by me rupe, but they dont, they take it on the total, i just dont play that way mate, my money is my money, i have sat their argueing with probably one of the biggest companies in the countries jobs worths about payment and money, and when i walked off site i was asked by the owner of the site why i wasnt starting now, i told him why, 30 days payment and cis, he said wait there and headed off, came back 5 mins later and said just start and you will get paid when you finish, job done.

 

They don't take it off the total, they take it off the labourt part of the invoice, so it must be itemised and you can down value the labour costs within reason.

 

Good for you on gettign round it, I've done that many times as well as I have said already. Walking off site is a good way of gettign things done how you want them especially as the office bod has deadlines etc and can't afford to find another contractor at short notice. He obviously pulled strings or fiddled it in your favour becaus ehe wanted the job done, but not becasue you were right.

 

If you were a bricky and tried the same stunt he would have gone into the office and called another bricky, simple.