I've just started working for a Company that uses subcontractors. This company has never deducted CIS as the engineers used were primarily air conditioning engineers. Yet now we are also going to be using Electrical Subcontractors.
We don't really want to go down the CIS route and I've noticed on the HMRC website that if its less than £1 million spent on construction works then there would be no need to deduct CIS from the subcontractors. Am I understanding this correctly that as our company's turnover is around £650k per year and that is for both air conditioning works and electrical works we would not have to make any deductions?
I've also being told by someone already in the industry that if our subcontractors become a limited company and I work for them as a book-keeper and do all the accounting works for them that this would be another way of not having to deduct anything.
Can anyone assist me as I want to make sure that what my MD wants to do is correct and that there will be no comeback from the HMRC as I know how strict they are when it comes to CIS.
Any advice will be grately appreciated.
- Mem & Arts - Multiple Share Classes & Rights 21 1
- Does IR35 apply? 79 1
- Capital allowances or revenue is capital? 93 1
- any implications of this type of transaction 58 1
- How much did you pay for your website 1,689 28
- Sage 50 cost centre limitations 99 3
- What font do you prefer to use for correspondence? 289 11
- Straightforward email correspondence or PDF letter attached to blank email? 1,032 13
- How to post Sales figures in Sage50 Accounts (we use separate Sales ledger) 265 7
- Sage data 107 1
- Course costs for retraining as a barrister 422 9
- Limited company buying a car 362 6
- Funding Circle experience 159 3
- Excel query 124 2
- Do I need to pay my accountant 1,298 13
- Payment on account penalties 133 3
- Tax on free shares 148 5
- Flat Rate Vat 14.5% and 5% reduced rate VAT 209 3
- Capital allowances on sale and puchase of business assets 129 1
- Audit 493 14
- CTA study material 805
- Anyone have clients that use Pay4Later to offer customers credit? 498
- Raiders of the Lost Tax File 461
- Employment related securities question 324
- AIM Stocks and IHT 312
- Tax Relief for overseas employees 283
- Expat pension contributions? 282
- Trust for Employee 257
- Service Charge Accountant Career Options 234
- IPP (International Pension Plan) income 161