Sub contract

[bryon52]

Hi, just wondering if I could have some advice. I did some sub contracting work for another company under my company name for about 3 months in the last tax year. The company automatically took 20% of my weekly wage in tax under the CIS scheme, so I already paid tax etc for this period of the tax year. How do I show this on my tax return etc? And will I get anything back for paying that much tax on my weekly wage for that period of time??

 

[john1989]

It's not clear. Do you have a limited company or are you self-employed?

 

[dmckellar]

Do you have any pay slips from the contractor?

It should show up on your tax code if you are only self employed

 

[Root 66 Woodshop]

Were they paying you an hourly rate - i.e. you were "employed by them under a temporary contract?

Or was your company employed by them for the work - if the company was employed and not you as a person they shouldn't be deducting anything surely?

I.E. you submit an invoice - they pay it in full plain and simple...

 

[bryon52]

I'm a sole trader, they paid me weekly, before putting money into my account they took 20% tax out! I didn't receive pay slips....should I have received these? I'm just unsure where to note this on my tax return

 

[bryon52]

So the situation I am a carpenter, I was sub contracted to finish some work for a contractor. I invoiced them and they deducted 20% tax off this invoice.

 

[john1989]

I'm a sole trader, they paid me weekly, before putting money into my account they took 20% tax out! I didn't receive pay slips....should I have received these? I'm just unsure where to note this on my tax return

There should be a box on the return for CIS deducted. You enter the total CIS deducted in this box.

Whether you will get anything back will depend on your yearly income, expenses and tax already paid at source.

 

[bryon52]

Brilliant thanks for your advice.

 

[Mr A P Davies]

Yeah, what John1989 said. Just stick the figure in the box on the tax return.
There used to be all sorts of bits of paper flying about, but that's all gone these days.
If the other party has done their sums right, you should just be sticking in 20% of the what you invoiced them for.

Totally off topic, and all, it used to be that hire charges were not deductible.
If I was using my kit, I'd hire the kit to the contractor, and take the hire out of the hourly rate, so it doesn't get 20% taken off it.
Obviously something like a digger would have a rate anyway, but I'f I used a trailer, or a mixer, or electrical tools, I'd put that down as hire too.
Not quite sure what the situation is now, nor how far it can be pushed, (can you hire them your chisels?) but might be worth you looking into.

 

[justintime]

I'm a sole trader, they paid me weekly, before putting money into my account they took 20% tax out! I didn't receive pay slips....should I have received these? I'm just unsure where to note this on my tax return

They should have issued you with a monthly statement showing CIS tax that had been deducted. As John 1989 says, the CIS tax deducted is entered into a box on the the Self Assessment statement and offset against any tax due. You will receive a rebate if the tax due is less than the CIS paid. One slight negative. If the contractor hasn't declared the CIS, you will still be liable for paying it, which is why it's important to have that monthly statement as proof.