CIS Registration - where do I stand?

[TimberCutterDartmoor]

Really need help on this one. Took on a £5-figure job for a building company which was completed back in July. At the time they asked if I was CIS registered. I am not. I checked as much as I thought I needed to and the Building Co agreed - just need a UTR number. Been chasing the co ever since for payment - little girl in accounts keeps making excuses ranging from "so and so is off sick or on holiday etc etc". This morning, she again stated that she will 'phone CIS to check payment can be made blah blah blah. This is really doing my head in - what is the score re CIS once and for all ??? Thanks!

[tommer9]

CIS scheme no longer exists, and hasnt done for a few yers now. For absoloute clarification phone your local tax office. Is this the place i did a day fo you at?

[Mr Ed]

Takes no more than 24 hours to get a UTR number. That has no bearing on you being paid. I had the same situation with Williams Southern (big construction company from down your way), had to get the UTR. The girl in accounts had the UTR the next day, and straight away processed the payment for me.

Remember that the tax element is purely on the labour part of your job.

I would give them 24 hours notice and then file a County Court claim against them.

[garth mc garth]

i regularly subcontract to construction companies who all insist on CIS registration whether it be for clearance work or fencing they insisted i have it. i rang my local tax office with my UTR number, National insurance details and it was all put in place for me. took a few days to all come into affect but i havent had any issues with payment since

[TimberCutterDartmoor]

CIS scheme no longer exists, and hasnt done for a few yers now. For absoloute clarification phone your local tax office. Is this the place i did a day fo you at?

 

Well this company seems to think it does and HMRCs website would tend to but there are so many grey areas hence my confusion. Yes - this is "that" place"...

 

Already given them my UTR #

[garth mc garth]

you will need to speak to the tax office directly as a contractor cant / doesnt generally do it on your behalf.

for the small amount of time and the little hassle it takes you may as well ring them up and get it done to save future problems

[skyhuck]

I have a letter from the tax office stating my work is agricultural and I am except.

 

I just send a copy with the invoice, never had a problem.

[TimberCutterDartmoor]

OK so here's what transpires:

 

Constr Co has phoned CIS helpline # (0845 3 667899) and come back to me. Not being CIS registered means they deduct 30% tax from invoice amount.

Being CIS registered (which I am doing as we speak) will change that to 20%.

 

Either amount I get back via HMRC.

 

My accountant reckons it's up to the individual company whether they deduct any tax at all or otherwise; persuading them to the former would be the key obviously.

 

Either way, will have second thoughts about this work in future; work is work but cash flow is cash flow...

[Mr Ed]

The 20% retainer is purely on the labour element. I usually put down the labour element as 20% of the invoice total, the rest being haulage, machine hire, etc etc. That way I only pay 20% of 20%. All above board and legal, but means they cant shaft you for 20% of the invoice price.

[skyhuck]

My dad is a joiner, he just views it as a government enforced savings scheme, he get money back each year.