Clean It Up
UK Window Cleaning Forum => Window Cleaning Forum => Topic started by: PAUL ERITH on June 15, 2013, 09:08:24 am
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I have been told it would help to gain future builders cleans and i have a few question that i hope can be answered on here.
1, When applying i was asked if i wanted my accountant to deal with my cis payments my account already does my yearly returns so will this cost alot more per year if he dealt with them or can i do it myself ?
2, how do you put cis payments through the books do you add a note to the payment ?
3, when putting a quote in how do you set the prices out ?
Total - £300
Less cis tax @20% - £60
Total Payment amount - £240
4, do you quote you cis number on the quote ?
Thanks Paul
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I think you need to read up on CIS further.
If you do work for a builder who operates payments under CIS you will need to provide them with your UTR number.
It's basically a scheme for sub-contractors as a means of taxing at source.
When you get paid 20% will be deducted from earnings at source, and is supposed to go directly to the Inland Revenue.
You will need to include this 20% deduction in your accounts when doing your tax return because it is tax you would already of paid. ;)
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I'm going to have a read up the lady said something about cis 360 for advice so ill have a look
Thanks Paul
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Paul I think you first need to define in what capacity you will be operating.
I presume you will be a sub-contractor for another company (building company, cleaning company etc.)?
If that is the case it's simple for you as you will only need to provide them with your UTR number, an invoice for the work (of which you should keep a copy of also), and a statement of some form that you should receive from the company when you get paid, which will outline the 20% deduction for tax paid.
If you are talking of using sub-contractors yourself then you will need to speak to HMRC or an accountant to set yourself up for the CIS scheme and organising a tax payment system.
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Paul I think you first need to define in what capacity you will be operating.
I presume you will be a sub-contractor for another company (building company, cleaning company etc.)?
If that is the case it's simple for you as you will only need to provide them with your UTR number, an invoice for the work (of which you should keep a copy of also), and a statement of some form that you should receive from the company when you get paid, which will outline the 20% deduction for tax paid.
If you are talking of using sub-contractors yourself then you will need to speak to HMRC or an accountant to set yourself up for the CIS scheme and organising a tax payment system.
I will be a sub contractor for another company the lady from hmrc is going to send me my cis number out as a register this morning just need to work out how to set out the quotes and invoices ect
Just need to have a good read up online about it :D
Like most things its seem hard when you haven't done it before but once i have done a few it should be easy
Thanks Paul
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If it is external cleaning, that is not covered works, there is no CIS payment to make.
We have been doing this a long time and I get asked all of the time for this.
I will find the link, to HMRC website, you definitely don't pay it for external cleaning
Rob ;D
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CISR14110 - The Scheme: construction operations: cleaning
CISR14600
Action guide contents
FA04/S74 (2)(d) states that the following operation is within the scope of the Construction Industry Scheme
'internal cleaning of buildings and structures, so far as carried out in the course of their construction, alteration, repair, extension or restoration'.
This provision is straightforward but you should note the following points
it only applies to cleaning undertaken in the course of, or on completion of construction work
it does not apply to the external cleaning of buildings and structures
it does not apply to routine cleaning undertaken on existing commercial or industrial premises not undergoing construction work
Some special cases are considered in the following paragraphs.
Cleaning prior to handover
After construction, commercial or domestic buildings commonly remain in the hands of the developer until sold.
Following the above principles, cleaning carried out for the contractor/developer during construction is subject to CIS, so is the cleaning operation carried out when construction is completed. 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.
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External cleaning
As an isolated operation, the external cleaning, jet cleaning, sand blasting and chemical cleaning of the masonry or brickwork or glazing of buildings and structures is not caught by CIS. Where, however, the contract also requires the subcontractor to make good any deterioration of the brickwork, stonework or glazing revealed by the cleaning, this represents a repair of the building. In this case the contract is mixed in character and because one of its requirements ('repair') is within the scope of CIS, the whole contract is caught.
External cleaning carried out on building sites, for example, road cleaning on housing estates undergoing construction, is not caught by CIS. This should not be confused with site clearance which is a more substantial operation and is subject to CIS.
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Show houses
After construction, houses commonly remain in the hands of the developer until sold. Following the above principles, cleaning carried out for the contractor/developer during construction is subject to CIS, so is the cleaning operation carried out when construction is completed. However, cleaning done after completion and while the building remains in the hands of the contractor/ developer is outside the scope of the Scheme.
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Within CIS
internal cleaning of buildings and structures in the course of, or on completion of their construction
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Excluded from CIS
external cleaning of buildings and structures
routine cleaning of commercial and industrial premises
routine clearance of gutters and sewage pipes.
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Thanks for that m clean confuse me even more why don't you.
Thats why you have a big business and im still a wee grass hopper ;D ;D
http://www.hmrc.gov.uk/manuals/cisrmanual/cisr14110.htm
I don't think it will do me any harm to be cis registered i have to pay tax on what i earn anyway and if it gains me extra work then its all good.
Paul
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Just been on the train a bit longer, that's the only difference ;).
Whenever we get asked about CIS, at least half a dozen times a year, we fire the link, to the client. it cannot be challenged, you will regret it if you go down the CIS route. It is money you shouldn't pay and you wont gain anything by paying it. The client doesn't care, it's only the tax man that does!
Rob ;D
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Just been on the train a bit longer, that's the only difference ;).
Whenever we get asked about CIS, at least half a dozen times a year, we fire the link, to the client. it cannot be challenged, you will regret it if you go down the CIS route. It is money you shouldn't pay and you wont gain anything by paying it. The client doesn't care, it's only the tax man that does!
Rob ;D
Exactly this ^^ good post!
And also thanks for that link M-Clean. I've just won (I think) a month long battle with a company we do a lot of sub work for to NOT have to register for CIS. I have first hand experience of running a CIS registered company in the past and it's not a route I want to be going down again, a complete pain in the ass it was.
Interesting that external cleaning does not fall into the scope of CIS! Every days a school Day! :D