Construction tax rate. Info needed

[Dr.Green]

Exactly what I was thinking. Il check up on hmrc site tonight and if true send them the link. I'm not a builder so I'm not in there tax circle. If rather pay my tax when in good and ready thanks

[Dr.Green]

I just seen this , so thoughtful post it. These jobs don't count but I guess a site clearance for a new build would (best plan my estimate carefully for next job)

 

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Basically the answer is no, unless the tree work for any particular job is being done as part of a larger construction scheme eg landscaping a new site etc. In which case, CIS would apply but ONLY for that particular job.

 

So if client spends most of his year doing forest management then no CIS, but if works as part of a larger construction site then CIS applies. and client would need to obtain a CIS ref number.

[jltree]

Exactly what I was thinking. Il check up on hmrc site tonight and if true send them the link. I'm not a builder so I'm not in there tax circle. If rather pay my tax when in good and ready thanks

 

I do a lot of tree work for a large landscaping country in durham. Do tree work on the roads , sites etc...

They take 20% CIS off every invoice for labour only, not for hired in plant.

I had to register with CIS otherwise they would of took 30% at source... Even doing tree work for Northumberland council at Haydon bridge was deducted as they have too. They supply a receipt when they pay my invoice to show what deductions have been done .. You just offset or claim back whats owed at end of year... JUst another way of the tax man getting his money up front.. Bxxxxxd....

[roseyweb]

Register for gross contractor then no deductions,

I had to do it, its a massive faff and HMRC are very unhelpful if not obstructive

[Dr.Green]

Hmrc say work on private households don't count under cis. That one bit cleared up. The next site was land for sale just a tidy up, il keep digging. I best register anyways as if more work comes I best be prepared and professional , means also when hunting for work Im ready to start Cheers folks

[Mull]

I just seen this , so thoughtful post it. These jobs don't count but I guess a site clearance for a new build would (best plan my estimate carefully for next job)

 

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Basically the answer is no, unless the tree work for any particular job is being done as part of a larger construction scheme eg landscaping a new site etc. In which case, CIS would apply but ONLY for that particular job.

 

So if client spends most of his year doing forest management then no CIS, but if works as part of a larger construction site then CIS applies. and client would need to obtain a CIS ref number.

 

They should have asked for your UTR (unique tax reference) and if your not registered CIS, they may take 30%, as has been mentioned.

[Tom D]

THis sounds dodgy to me without having you UTR and CIS details how can they deduct the money, it could be going straight in their pocket for all you know. You will need proper paperwork from them n order to claim it back.

 

FYI deductions can only be made from the labour element of your invoice, materials or machine hire don't qualify, so breakdown your invoice and keep the labour element small.

[skyhuck]

I have a letter from the tax office saying I'm except.

[Notmegov]

I do lots of Public rights of way work for the council, and they always deduct my tax under the cis scheme. Its not construction work at all but it work well for me.

[doobin]

I do lots of Public rights of way work for the council, and they always deduct my tax under the cis scheme. Its not construction work at all but it work well for me.

 

That's ridiculous. They're treating you as their little bitch who can't be trusted to pay tax, not as a bona fide sub contractor who may well have genuine overheads as such that he wouldn't pay much tax anyway.

 

Presumably you are not some subby bricky who turns up with nothing but a trowel and takes home a onener in cash, and if not forced to pay at source would have no intention of paying tax. You are a genuine business buying fuel, expensive machines and transport? Or do the council supply everything and you are 'labour only'?

 

If you employ people, then you would presumably need to claim back their tax which had been taken under CIS also?

 

Registering as 'gross contractor' is presumably the best way around this?