CIS Help

[longleaf1]

Hi Guys,

Bit of help please - customer says they need to take deductions from my invoice under CIS - I say the work doesn't come under CIS
HMRC are giving us conflicting answers.

What shall I do?

 

[Michael Gerard]

Without obviously knowing more details, my first response would be yes to the deductions. However, this is only the labour element of the invoice.

 

[longleaf1]

Charlie what details do you need to know?

 

[Michael Gerard]

Charlie what details do you need to know?

Just who the customer is and their own role, and a brief resume of your company. For example, is it a main contractor / sub contractor relationship or, a business to a private customer.

 

[longleaf1]

Charlie - I'm PM'd you the details - hope this is ok

 

[David Griffiths]

The first point to clarify is the nature of the work that you are doing. Without that, nobody can give any advice. There is a presupposition that the customer is a registered as a CIS contractor. Are you registered as a subcontractor - that could affect the amount of the deduction

The second would be if it actually matters - if you are a limited company and suffer a deduction you can set it against the company PAYE/contractor payments due for the month. In that case it might not be worthwhile expending time and energy arguing about it

 

[Michael Gerard]

Rich,

I have replied to your private PM. Also David Griffiths has made a good point in his second paragraph. However, my main concern is whether the contractor is good for the money, as it has not paid you - even with the deduction made.