Labour split.

[colwoodlandcare]

We have just done some work for a contractor and they have asked us to send them a labour split?

 

Is this as it sounds, break up the invoice into what was labour in the job and the rest was Machinary running costs etc?

 

 

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[muttley9050]

Yes exactly. I've had it before and reckon it's out of order. If they have accepted a price it's none of there business how you divvy up the proceeds. I just made it up .

[swinny]

Yup I refuse to do anything like that, esp for tree work!

 

For fencing thats a different matter etc materials and labour cost

[Dean O]

CIS deductions are a pain in the bum.

 

split should be for labour and materials.

 

I very rarely supply any materials as our work is arb - so I just respond as 'all labour' and handover our CIS number.

 

quite often I doubt that we are truly part of the 'construction' of a site but just go with the flow - its nice when its finally reclaimed any you don't have a large PAYE bill.

[colwoodlandcare]

What do you mean by reclaimed?

 

 

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[colwoodlandcare]

Not sure on terminology but hopefully I can explain this.

With the value that I give them for labour are they going to deduct the tax already for us, meaning it's better if I put the value of labour less so we sort out all the tax on it.

 

Hope this makes sense.

 

 

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[kevinjohnsonmbe]

Have a look at this fella:

 

https://www.gov.uk/what-is-the-construction-industry-scheme

 

Might give you some pointers...

[colwoodlandcare]

Thank you.

 

 

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[AardvarkTreeServices]

Not sure on terminology but hopefully I can explain this.

With the value that I give them for labour are they going to deduct the tax already for us, meaning it's better if I put the value of labour less so we sort out all the tax on it.

 

Hope this makes sense.

 

 

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If you are registered for the CIS scheme they'll deduct 20%, if not they'll take 30% of the labour. They should take the cost of fuel, materials, plant hire and VAT off your invoice and make the deduction off whats left. Just make sure you get the receipt for the deduction so you can set the deduction off against any tax due at the end of the year. If you'd rather keep the cash just overstate the cost of the materials etc!

[colwoodlandcare]

Is it free and easy to register to the CIS scheme.

 

So the value I should give them should also be after I've deducted the wages I've payed the lads as well?

 

 

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