Cis?

[Gray git]

I have done some stump grinding for a local construction company good little job on a rebuild site but when I sent my invoice was told I needed cis to be payed...

After talking with 1 of the directors I got payed but had to change the wording of my invoice.

So what is cis, will it cost me to get and do I need it as would like to price more work for the company and similar in the area?

[Paul Smith]

Construction Industry Scheme, means they take 20% tax at source!

[arbwork]

HM Revenue & Customs: Construction Industry Scheme the power of the internet

[tree monkey]

i dont think you need one if you invoice them as a company not a sole trader.something to do with tax dodging workers in the past.

[kernowstu]

only on labour NOT materials or plant hire,it does work as a good saving scheme if you are on constuction sites alot ie 9times out of 10 means a tax rebate

[harvey b davison]

i didnt think arborculture was covered by the cis scheme.

[Gray git]

Looks like it might be as could be classed as site prep.

Think I might be sat on hold for a while tomorrow calling the help line...

Still not sure quite how it works or why.

So why might I need it to work for say yorkshire water pruning trees next to a n existing treatment plant wher no outher construction work us taking place or for a LPA on a sports field/public park?

[Pedroski]

We're looking at CIS at the moment. I'm currently self-employed, do my own tax returns etc, but working almost exclusively for one company. I invoice them, they pay me. However, because of the extent I work for them then I should be classed as an employee, with them paying my tax, NI, giving me paid holiday, looking after me etc. The company's accountant has suggested to the company that they pay me under CIS, which means they pay my tax, but I can still claim tax relief on all my expenses - I remain self-employed. The accountant said it makes it all more legit, and that HMRC turn a blind eye to the fact that the work isn't solely construction related. Sound fishy to me!

 

It may just be that the company you did the work for does everything through CIS and that's how they wanted to pay you for simplicity.

[eddiegts]

It's not a big problem we(Arb) will be deducted 20% from your invoice if you work on a construction site eg site clearance or working on site while building work is be done. You will be issued a Cis receipt with your remittance advice keep this and give it to the person that does your accounts and you will not have to pay any more tax on that invoice. Not sure if this helps

[DN22 Gardening]

we do a fair ammount of work under CIS scheme.

You only need to register if you employ sub contractors on construction sites.

 

If YOU are the subby, the main contractor ( the one who pays your invoice) will deduct 20% of your invoice for Tax. When he pays you, you should also get a remittance advice slip showing the tax you've paid. As said above, this goes to your accountant with your year end books.

 

Basically, the govt. is collecting a little tax money before it should. As good as money in the bank.

 

We've just got our rebate for this year, a cool £3K, holiday spendo's for me...lol

 

A quick tip for anyone new to CIS. If you've had to supply materials, say so on your invoice. i.e. if your invoice is for £5,000 and you've spent £3,000 on materials, hire, anything other than labour charges. you'd put on the bottom of the invoice "for the purposes of CIS £2,000 of the above amount is to be classed as labour charges"

 

that means that instead of them taking 20% of £5,000 ( £1,000 ) they'd only take 20% of £2,000 (£400)

 

hope this helps, Dave