please help cis scheme!

[joblot]

hi all new member here
im confused here goes
im a sole trader/self employed electrical tester which isnt in the cis scope
i am about to sub contract for a electrical contractors which is
registered with the cis
as well as doing some testing for them i will be also doing work which
will fall within the scope so they are saying that all jobs done will have to
come under cis ie 20% deduction
i thought that if i did a job not in the scope they wouldnt deduct
and if it was they would?
for example if i did a job say on monday testing not in the scope
and one tuesday in the scope
that would be two contracts?
totally confused can anyone help!
regards

 

[David Griffiths]

CIS only applies to construction operations as defined. That means that if you do work that is not covered by the definition of construction operations then the contractor is not required to deduct tax, provided that it is contracted for separately - i.e. not added on to work that is clearly caught.

It is not true to say that if some work is in the scheme then all work must be subject to deduction.

There is reference on the HMRC site to resolution of disputes between contractors and subcontractors - here

 

[talkinpeace]

If what you do is not in the scope that's that
the people who clean a new office at the end of construction do not become CIS just because they have been on a construction site.
If you are just pat testing and not fitting and testing then you are NOT CIS.
If you tried to register HMRC would reject it.

 

[David Griffiths]

the people who clean a new office at the end of construction do not become CIS just because they have been on a construction site.
.

In most cases they do, actually. HMRC link

 

[MrPAYE]

It all comes down to the contractual terms.

If it's a mixed contract i.e. some CIS work and some non CIS work, then the whole lot is subject to CIS.

If the non CIS work is kept to a separate contract then it falls outside CIS.

 

[talkinpeace]

David
on that link
However, subsequent cleaning done after completion and while the building remains in the hands of the contractor/developer is outside the scope of the Scheme.
guess what normally happens!!!!!