Being paid through CIS - Construction Industry Scheme for tax purposes

[Timber Futures]

11 hours 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 👍

[Timber Futures]

Thanks for responses here - don’t mind having the tax to offset or to claim back and it looks like there is no way round this. Developer should have been clear at the outset and I should have done my homework and not assumed it would be like previous jobs, where the land owner paid in the usual way. 

[doobin]

Register for gross status (if your business is of good standing with hmrc) and they can then pay you in full. 
 

What you must do as a Construction Industry Scheme (CIS) subcontractor: How to get gross payment status - GOV.UK

WWW.GOV.UK

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What subcontractors in the building industry must do under the Construction Industry Scheme -...

 

[Mark Bolam]

56 minutes ago, openspaceman said:

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.

No, you don’t get it back, it’s just offset against your final year tax bill.

 

Like Timber Futures, I found that construction firms try and spring it on you as a surprise.

Always check!

[monkeybusiness]

18 minutes ago, Mark Bolam said:

No, you don’t get it back, it’s just offset against your final year tax bill.

 

Like Timber Futures, I found that construction firms try and spring it on you as a surprise.

Always check!

In fairness to the construction firms, I don’t think they purposely keep it quiet, it’s just a standard part of how they operate now (along with zero rated vat etc). They aren’t saving any money withholding the dosh, they pay it directly to HMRC so the cost of your invoice is exactly the same to them. 

[AHPP]

12 hours ago, AHPP said:

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

Pretty sure I was thinking of surveyors, not tree surgeons. As you were.  

[Butchers Block]

what you can do is charge construction firm hire of your equipment, truck, chipper, etc, delivery to and from site, cost of taking all arisings away, all of which is not eligible for CIS.

You then charge for your labour separately which you have to pay CIS on.

Hope this helps firms with cash flow.

     

[Stephen Blair]

Register and you pay 20% on labour.

 

itemise your bill.

break it all down and say it’s a £10k job, realistically your labour might only be £2k.

so they’ll take £400 off you.

 

 

[dumper]

Do as doobin says and get paid in full!

[topchippyles]

1 hour ago, dumper said:

Do as doobin says and get paid in full!

To late now he will need to make that clear on the next job.