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Crowy2004
21st July 2009, 07:31
Hi all,

Just wanting to check this as somewhat confused:-

If an individual is CIS registered they are deducted at source on their weekly/monthly income and receive documentation in the form of a CIS voucher. At the end of the personal tax year all permitted expenses are calculated and a normal P&L/I&E schedules are prepared (with income being grossed up). If the taxable amount on the profits is lower than than the tax actually paid at source, is the individual allowed a refund for this differrence?

In respect if NI - CIS should be Class 2 registered. Should they however have to Pay Class 4 national insurance on profits over £5715?
elainec100@cheapaccounting
21st July 2009, 07:38
If an individual is CIS registered they are deducted at source on their weekly/monthly income and receive documentation in the form of a CIS voucher. At the end of the personal tax year all permitted expenses are calculated and a normal P&L/I&E schedules are prepared (with income being grossed up). If the taxable amount on the profits is lower than than the tax actually paid at source, is the individual allowed a refund for this differrence?

Yes - of course that is why they complete a self assessment.
maidofkent
21st July 2009, 16:23
Crowy,

The figure of £5,715 is not correct. For 2008/09 you will pay Class 4 NIC on profits over £5,435.

It's worth saying that you no longer get CIS vouchers in the format they were until April 2007.

Your contractor should send you a monthly statement detailing your invoice value, the labour element, and the tax deducted. The statement is not of any standard layout - he can present it however it suits him, but it must have certain information on it, such as your NI Number and UTR.

Hope this helps.

MoK
Crowy2004
21st July 2009, 19:25
Many thanks for the comments so far. Would the individual have to pay Class 4 NI though?
maidofkent
21st July 2009, 19:37
Yes, it's calculated with your tax calculation. Are you thinking it might be deducted by the contractor?

He doesn't have any involvement with your NI contributions. You pay those yourself.

MoK