Contractors & Sub Contractors - CIS Changes and CITB Levy Change

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There is a lot, id read the bits that will affect you, it basically states :
Under CIS, a contractor must deduct 20% from your payments and pass it to HM Revenue and Customs (HMRC).

If you don’t register with the scheme, contractors must deduct 30% from your payments instead.
 
Geason said:
There is a lot, id read the bits that will affect you, it basically states :
Under CIS, a contractor must deduct 20% from your payments and pass it to HM Revenue and Customs (HMRC).

If you don’t register with the scheme, contractors must deduct 30% from your payments instead.
Click to expand...

There's nothing new about that?
 
its the CITB grant bit that changes on 1st August. So if your CITB registered, and have a subby working for you that is not CIS registered you lose out on the grant for their training.
 
Jgreenplastering said:
All subbies must be cis registered I thought?
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If you don’t register with the scheme, contractors must deduct 30% from your payments instead.

If you don’t want deductions to be made in advance by contractors, you can apply for ‘gross payment status’ after you’ve registered with CIS. This means you’ll pay all your tax and National Insurance at the end of the tax year.
 
I get 20% taken when working for contractors etc, but on the rare occasion someone helps me out, I just pay them in full. They can pay their own f**k**g tax. I'm not doing HMRC's job for them. f**k'em.
 
I think it's 200,000 a year turnover for an ltd, but they knocked us back when I looked at it a few years ago because I was late with a cis return. I've never looked at it since.
 
owls said:
I think it's 200,000 a year turnover for an ltd, but they knocked us back when I looked at it a few years ago because I was late with a cis return. I've never looked at it since.
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I've been late few times over the years and they threaten to take it away.
It's a godsend for cash flow.
 
Yep it is, but I guess it all evens up at the end of the year, and I can offset the cis tax that has been taken off me against lads on my paye on my books that are taxed.
 
For gross the total turnover doesn't really matter you just have to prove your turnover to nett profit margin and it must fall within the parameters. Material are itemised as part of the turnover test.

Lots of contractors need it because the profit margin on commercial works is much much lower than the 20 tax an MC would deduct so effectively you would run at a loss until you could claim it back at the year end. But then if HMRC don't want to refund u then your screws with a loss because of the Cis scheme.

Ive just gone through the whole process. Than God just pay what I owe at the end of the year now instead of overpaying then arguing with them about what they are willing to pay me back.

Oh did I say they are a bunch of cnuts too ?
Well they are.
 
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