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Contractor or not

Plunmber fits etc on residential property.  Sometimes he has to much work on and will get someone else to come and do a job, they also supply materials for the job and bill the plumber.

Not deducting any cis as it stands, i assume that he should be.

Can someone just confirm that they need to reg as cis contractor and deduct cis??

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11th Feb 2011 11:56

Yes

A homeowner is excluded from being a CIS contractor, so there is no question of the homeowner having to register or deduct tax.  However, if the plumber takes on a sub-contractor, rather than an employee paid under PAYE or a colleague billing the homeowner direct, to do plumbing work, then of course, he becomes a contractor and must register as such, verify the sub-contractor, deduct CIS tax at the advised rate and make monthly CIS300 returns.  The homeowner exemption does not extend to sub-contractors of the person who has the contract with the homeowner.

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By blok
11th Feb 2011 12:44

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Euan, I am sure you are correct (you usually are) but can I pick up on the conflict in your answer.

The homeowner in this case is the plumber so why does he have to look at the CIS issue?  The fact that he is a trader surely is irrelevant?

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11th Feb 2011 12:49

@blok

The question is not particularly clear, but how do you read "Plunmber fits etc on residential property" to mean that the plumber is doing work on his own home?

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By blok
11th Feb 2011 12:51

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Euan, I dont know why?  I just added 2 + 2 and got 5!!

Having read it back it doesnt mention that its his own home.  That was silly.

 

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11th Feb 2011 13:01

How do you reach that conclusion Blok?

Beaten too it by a blond!

That atavar is distracting!

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