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.
- Self-employed 112 4
- Has Microsoft taken a huge bite out of Apple 366 5
- Are there any auto-enrolment engagement letter templates? 935 19
- VAT commercial property TOGC 86 2
- Audacity 1,399 24
- minority interest discount 187 6
- Allowable for Corporation Tax? 410 11
- Seeking advice: Need some help with Company Accounts 606 9
- Microsoft One Drive 492 17
- Not a question but made my day 1,242 24
- Software Sales 129 2
- Seeking advice: Freehold Pub Lease 356 10
- Amending 13-14 sole trader return to reflect increased profit in 14-15 341 5
- vat gross margins 136 1
- Winning clients from retiring accountant - ethics/morals 1,607 13
- A rant - Debt Management units vs PAYE office response times 192 1
- How do I know if I have to apply a reverse charge mechanism 213 4
- On to a loser here? 1,199 4
- Client right to working papers 1,380 9
- 2020 Annual Conference 147 1
- NHS finance professionals 604
- Auto Enrolment and Foreign employers 391
- Foreign Pension Contribution 367
- vat gross profit percentage margins 338
- Employee's statement of sickness (SC2) form - no longer available as downloadable pdf 332
- Pre Season Invoice dated September how do you treat the VAT as not due until May 16 310
- SWAT AML v Anti Money Laundering Compliance Plus (AMLCP) 275
- Quickbooks online filing of VAT 263
- Does pension term assurance count for unused relief purposes? 238
- IFA income recognition & reporting 202