Being paid through CIS - Construction Industry Scheme for tax purposes

[Timber Futures]

Has anyone got any experience of working within the construction industry? Just completed a job felling 30 plus trees on a building plot and the developer is saying they need to pay through the CIS which means they will deduct tax and pay to Inland Revenue using our UTR. We've cleared sites before and been paid as normal so not come across this on other projects. Obviously we're not construction workers but tree surgeons, but the developer is saying this is a construction project so they have to follow the legislation. That's fair enough but we weren't given the heads up on this prior to taking on the job. It was a tricky too, surrounded by other gardens, a road and neighbouring fences with access only through a narrow gate, so lugging all the climbing and rigging kit in and out by hand for 4 days. It went well no issues and client and neighbours are happy so bit pissed at being told that daddy will be educating 30% tax. Any experience of similar situations or advice much appreciated. Many thanks, Tim O

[monkeybusiness]

You can opt out but need to register with HMRC and provide proof to your customer when submitting your invoice. 

[AHPP]

Isn’t there a list of exempted trades that includes architects and tree surgeons?

[Timber Futures]

I did say to the developer we’re tree surgeons not construction workers and that it was technically a harvesting operation but he claims under CIS it comes under site preparation so is covered by the scheme. I also tried the angle that we were working above ground not breaking soil but no to that too. 

[Timber Futures]

30 minutes ago, monkeybusiness said:

You can opt out but need to register with HMRC and provide proof to your customer when submitting your invoice. 

I’ll check this out with HMRC too - thanks 👍

[topchippyles]

24 minutes ago, Timber Futures said:

I did say to the developer we’re tree surgeons not construction workers and that it was technically a harvesting operation but he claims under CIS it comes under site preparation so is covered by the scheme. I also tried the angle that we were working above ground not breaking soil but no to that too. 

What's the problem you will have tax paid on account with the HMRC. It will mean a nice tax rebate or payment towards any tax bills next year. I work for various firms that do this system never a problem.

[monkeybusiness]

1 hour ago, Timber Futures said:

I did say to the developer we’re tree surgeons not construction workers and that it was technically a harvesting operation but he claims under CIS it comes under site preparation so is covered by the scheme. I also tried the angle that we were working above ground not breaking soil but no to that too. 

Technically it’s not a harvesting operation if being undertaken to facilitate development under planning permission - similarly you have to use white diesel in machinery etc as it falls under construction. 

[eggsarascal]

It's construction, CIS however we would like to look at it.

[Mark Bolam]

You can’t get round it, I’ve tried!

 

If you register for CIS before you submit your invoice (registration is pretty quick and easy) you’ll only get 20% deducted instead of 30.

 

These days I just add 20% if I know we’re working under CIS, and get the tax break at the end as well.

 

 

[openspaceman]

44 minutes ago, Mark Bolam said:

These days I just add 20% if I know we’re working under CIS, and get the tax break at the end as well.

Do you mean you get the tax back at the end of the year? I always assumed it was set against your end of year  profit as a credit for tax already paid, I never suffered it myself.