[davep]

I have always told building firms I sub contract for I dont need to have a cis number so they can deduct tax from the job, have one that is (up to now) insisting I do.

Any one any experience with this?

[Doug Holloway]

Hi Dave

I did approx£1000 job for a builder last summer.

When I sent in the invoice they had to deduct about 30% and I got a tax credit form which I can use to ofset against my tax next year, as that is when it appears in my accounts.

I suppose if I was CIS registered they would not have had to take the money.

Cheers

Doug

[Neil Williams]

I suppose if I was CIS registered they would not have had to take the money.

Oh yes they do.
Ive got a CIS card and to be honest unless most of your work is CIS all it does is cause hassle for your accounts.

[Steve Barnett (Carpet Care Plus)]

I wasn't aware that carpet cleaning fell under the CIS scheme.

Carpet supply and fit doesn't - but flooring supply and fit does, last time I checked anyway.

[Mike Halliday]

I did a job for a builder last month they sent the invoice back.....

Henry,
Payment sent of £620.00 by internet banking.
Could I be a pain and ask you to amend the description on invoice to:
 
Provide equipment and materials to enable plots 1 to 9 parking bays at xxxxxxxx, xxxxxx to be powerwashed.
 
This is so I do not have to do CIS tax vouchers etc
 
Thanks


perhaps if you itemise the invoice the bill so it includes materials as well as labour it might be exempt

[John Kelly]

Most of the flood companies have now convinced the revenue that they don't need to be involved in CIS as they are cleaners not builders. So try and expalin to the builder that cleaning work isn't involved in the scheme.
Best thing to do is ring your local tax office and ask them. If they are not forthcoming then just go down and register and you will receive a card. They can only take a percentage of the actual labour charge so you could split your invoice say 70-40 with the 40 being product cost. That way they would only keep a percentage off the 70%.

Doug I'm surprised this happened because if you weren't in the scheme there should have been no way they could have deducted the tax.
You are only exempt to this if you do a certain amount of work for one clients over a certain period of time but it is thousands of pounds.
It was brought in because the Irish labourers were coming over and working on the buildings and being paid gross then disappearing before they paid any tax.

[davep]

Spoke to hmrc and they say if its construction and the carpets are being cleaned as part of this (office refurb) then you need to register for cis and pay the tax straight away.

If the builing work is completed and I go in to clean then no cis.

Straight forward as ever  :

[John Kelly]

I despair at times. It will probably cost a packet for you to go through the registration process, the builder to process the tax etc all to take some tax which they would have got anyway. Pathetic.

[Neil Williams]

I despair at times. It will probably cost a packet for you to go through the registration process, the builder to process the tax etc all to take some tax which they would have got anyway. Pathetic.

My CIS card goes back years from when we were doing builders cleans etc for a main line builders. I don't think it cost me anything to apply only the time spent at the local tax office filling in forms and proving who you are.
The hassle begins when you wait ages for job payment, only for it to arrive 25 % short when then has to be accounted for on your income/expenditure. Then unless you've got an accountant familiar with CIS schemes it causes time and effort getting him up to speed with it, and making sure he accounts for it correctly. 

[davep]

Tax man said call with utr number an ni number and that's it, no registration fee

[John Kelly]

No I meant it would cost the tax people money to process the card etc, not you. Just a waste of money.

[Kinver_Clean]

You no longer have a card- just a reference number to give the builder. He then takes the tax off and you put it towards the tax bill at the end of the year.- A bit like saving it up.
They should be well up and running with the system as they have to do it all the time.

[Doug Holloway]

Hi Guys

Mine was a refurb so that explains why they took the money.

I had forgotten all about it!

Cheers

Doug

[Jamie Pearson]

They nearlY always ask for the materials/labour split from us.

Bit of a nightmare at times. If they run over budget they are back on after 120 days + asking for a reduced labour rate etc etc.

Pain in the Harris.

[Kinver_Clean]

I did a lot for a big builder in Brum- 400+ flats at a time.

They announced that they were reducing all suppliers prices by 10%.
Funny, I had just put mine up by 15%.

[Dave_Lee]

Builders get caught up in their own little world with this and some seem to be of the opinion that everyone and I mean everyone needs a CIS card.
Years ago I did a carpet and upholstery clean for a builder in his home.
When I gave him my invoice, he said that if I didn't have a card he would have to deduct tax. I told him I was wasn't working for his building firm, I had carried out a private domestic job.
His wife heard what was being discussed and told him not to be so silly. She paid without fuss.
Dave.

[Denise l]

I get stopped 20% on all the new build cleans I do. You can offset this monthly against your tax if you have employees. Otherwise you have to wait 12 months until April 7th and make a claim on your P35. I submit my invoices now with a higher split on materials as its the labour that gets stopped the 20%.
Just written to David Cameron on it as I now have to wait until October as they have a 'backlog' to deal with yet if I am a day late with my VAT payment they fine me.
And they say they are trying to help small businesses.

Oh and if your turnover is under £60k you can apply to be exempt from CIS deductions .
Denise