someone please help!

[booboo]

hi

i just started a air con company,im awaiting my unique tax code until then if do any work subcontracting the company i do work fortakes 30% tax,im doing work for one of these companys providing everything,i paid tax on air con units when i bought them and materials i quoted them £4700 for labour and materials will i get taxed 30% on all the £4700 or just the labour.if i get taxed 30% on all i wont be making much money,does anyone know how to go about it ,without my unique tax number its confusing me thanks for help

[Tom McClelland]

if this is CIS you only get charged tax on labour.

Also the 30% being deducted from you by your client is an advance on your personal tax. If you end up owing less personal tax than that at the end of the year you get a refund from HMRC.

[booboo]

thanks £4700 £3000 including vat is materials and £1700 labour if i get taxed together im going to get stung

[Tom McClelland]

thanks £4700 £3000 including vat is materials and £1700 labour if i get taxed together im going to get stung

When you submit your claim/invoice to your client make sure you clearly show what is materials and VAT and what is labour. Their CIS software should do the rest correctly, so 30% will be deducted from the £1700.

[booboo]

thanks tom,your a gent

[David Griffiths]

Don't forget that your tax deduction rate will come down to 20% as soon as you have your UTR and are properly verified. The tax that is deducted will be taken into account when you do your self assessment return, and you pay or receive the balance according to your circumstances.

Your contractor must give you a statement at the end of each month showing the total that you have been paid, and the tax deducted.

That word is must - if you don't get it, insist. Too many contractors don't do this properly and it can cause you problems at the end of the tax year.