Construction tax rate. Info needed

[Dr.Green]

Evening. Today I invoiced a construction company. They claim they deduct 20%. I'm like hold on a second. What's the crack here folks does anyone know. I'm not vat registerd either

 

This time thou they said redo invoice as consultancy fees and it won't get 20% deducted

 

Could do with a bit info as work for a roofing company to price tomorrow.

 

Didn't like the idea of them taking 20% off my £450. The cheek of it

[arbwork]

20% is the usual for construction deduction

[AlexB]

Which they must give you a receipt for and come tax time you have to claim it back!

[John Shutler]

Think of it as tax paid that you don't need to worry about at the end of the year

[treequip]

AFAIK The deduction is on labour so break your invoice down into labour, hired in plant and disposal of waste.

[Fenland]

I assume they have also verified you with HMRC i.e. you have provided National Insurance number etc?

 

I assume you have also registered as a CIS subcontractor with HMRC

 

Just trying to see if they are trying it on..

 

 

What and where was the work...I am lead to believe that some tree work doesnt even fall under the CIS scheme

[Dr.Green]

Both private sites. I've done the owners house a few times. You might think the 20% isn't much but me being so small it is. They way my tax works its so low it doesn't exist. Well at least this and next year.

 

Not a cis registerd contractor either. Surely they can't do it with everybody, as I'm not in the construction trade loop

[Dr.Green]

1 job tidying up roadside hedges of a bit land for sale. The other a conifer removal. Jobs nothing special but they have future work so need to think about pricing. Don't want to feel I'm being robbed

[Dr.Green]

Afaik --- yes they did say labour but I just give a price to do it outright. Next time il break it down. Then they will see we don't earn the whole lot

[harvey b davison]

I believe the 20% is the rate for cis which is self employment in the construction industry. If your not cis then i dont think they can deduct it. I didnt think that tree work was covered by cis anyway.