[Richy L]

I have been sent a works order for graffiti removal and it says "retention % 5" next to the "total net amount"
What does retention % 5 mean?

Can anyone help please??

[Griffus]

This is usually held back in case of future problems with work carried out.

Getting it back is often easier said than done although a time frame should be advised / agreed from the outset.

Check the T & C's.

5% isn't too bad though. We get 20% CIS deducted from all invoices within the build sector. Tax at source, sure does sting!

[daz1977]

i use to have a mate who was a builder and had all his contracts with the same company,  he could never work out why he was skint all the time, turned out that the company had kept 70 grand in retention  from all his contracts with him, in the end he went bust as he owed out what they owed him   be careful with retentions

[martin19842]

hi there

firstly, retention and CIS are totally different things, dont get confused.

secondly dont agree to retnetion on any clenaing activities, the job is done, and thererfore IT IS CLEAN, get the work signed off as soon as you have done it sp graffitti, photograpgh before and after, and then get paid,

if you dont , then the kids will be back with there spray cans, and thats your retention gone.

good luck

regards

martin

[Griffus]

hi there

firstly, retention and CIS are totally different things, dont get confused.

secondly dont agree to retnetion on any clenaing activities, the job is done, and thererfore IT IS CLEAN, get the work signed off as soon as you have done it sp graffitti, photograpgh before and after, and then get paid,

if you dont , then the kids will be back with there spray cans, and thats your retention gone.

good luck

regards

martin

Sorry for any confusion. CIS is a separate issue. I was just pointing out that 5% isn't all that bad.

Martin does make a good point however and I should have picked up on this too. That is that retention shouldn't apply to cleaning works for the reasons he stated.

We have had it stopped a few times without warning but always had it refunded via the next payment after highlighting the error.

Discuss this with your contact. I am sure that you'll find it is almost certainly due to their system deducting this automatically and so refund will be no problem.

[Richy L]

Cheers guys,
The work site is under site conditions as it is a complete refurbishment including some new buildings, so it is classed as construction. I did check when I booked my CSCS test if I needed it, but apparently I do.
I always take before and after pics for graffiti removal too!

Cheers guys

[Griffus]

Richy, I expect that CIS (Construction Industry Scheme) will also apply here.

This means your customer will deduct 20% of the total invoiced from payment. They will then pay this to HMRC on your behalf.

You will then either offset or reclaim at the end of the financial year.

As well as showing this on your remittance you should receive a statement from your custy confirming the total CIS deducted.

[Richy L]

ah great! 
I know it is tax paid, so there are no nasty surprises at the end of the tax year, but it just seems like I'm not getting all my money


I do some work for a decorator on a subcontractor basis. He stops me 20% of everything he pays me. These jobs are not on a contruction site. Should he be stopping me this CIS tax? after all, it is only cleaning I do for him