CIS Query

CIS Query

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Good morning, 

I have a query, a client is registered as a sole trader under CIS scheme as a subcontractor. He is paid by the main contractor after he's presenting the invoice 30000 per month less  CIS which  deducted by the contractor. He as well to be able to carry the works is working with another 4 guys . How he should pay them? he has to register as a contractor and deduct the cis liabilty from their pay? But in this case the money are taxed two times . He can get a refund from HMRC? When he is close to 83000 turnover next year he has to register for VAT?

If he is working same sistem as an LTD wich are the advantages?

I would like to thank you in advance for your answers,

Many thanks, 

Replies (10)

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By Alastair Johnston
25th Mar 2016 11:09

If you don't know that £30

If you don't know that £30,000 per month will take him well past £83,000 this year, you shouldn't be in business as an accountant. 

If you don't know such basic points of CIS and VAT, you shouldn't be in business as a tax adviser. 

Thanks (1)
Replying to Cheshire:
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By Luise
25th Mar 2016 14:29

Thank you Mr, Johnston, 

Thank you Mr, Johnston, 

 

I am not in business as an adviser- I wish :)

 

I am at a beginning especially in CIS field. For the VAT I wanted just a confirmation. 

 

many thanks for your reply, 

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By MM Bookkeeping Services
25th Mar 2016 11:53

Same post on ICB forum

I agree with Alastair Johnston - I suspect the OP is not an accountant as they have put the same post on ICB forum and it would appear they are an associate member of ICB.

This is the sort of thing that gives other bookkeepers a bad name.

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By K@ty
25th Mar 2016 12:14

Help needed!
Hi, I am new to the Cis scheme and have a question I am hoping someone can give advice on.

We have paid a subcontractor in January but had not set up online with Hmrc to file the monthly returns as yet

Can we add the payment to the Monthly return for Month end 5th March on HMRC even though we paid him in January?

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By Alastair Johnston
25th Mar 2016 13:46

You could ...


... but the return would be incorrect. 

How did you get HMRC to tell you which rate of tax to withhold under the CIS, without yourselves being registred as a contractor?

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By K@ty
26th Mar 2016 09:36

Thank you for your reply Mr Johnson
Hi,

I am not sure how we found this out to be honest. My manager set us up passed over her information and has told me to get on with it..hence why I am sourcing advice from you guys!

They are showing as verified on HMRC and have been paid and taxed correctly....

The issue is that all payments to them in the month prior to the return month end 5th March have been added to the figures for that month - so all one lump sum!
I have asked her the question and she said it should all "right itself" the end of the tax year which is now upon us.
Is this the case as I am sure that all payments made should reflect what is filed each month?

Thank you very much in advance for your help! :-)

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RLI
By lionofludesch
26th Mar 2016 10:12

No double taxation

CIS deductions aren't a tax.

They're a payment on account.

It's a common error.

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Replying to lionofludesch:
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By K@ty
27th Mar 2016 09:06

Thanks for your comment. I stand corrected.
If you can give me advice on my monthly return query also I would be grateful :-)

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Replying to DJKL:
RLI
By lionofludesch
27th Mar 2016 09:49

@ K@ty

<a href="mailto:K@ty">K@ty</a> wrote:
Thanks for your comment. I stand corrected. If you can give me advice on my monthly return query also I would be grateful :-)

The comment wasn't aimed at you.  Always confusing when someone piggy-backs a second query into a thread.

No - you should have filed file returns for the correct periods.  You have a reasonable excuse for not filing on time.

However, as you've already done it, what's done is done, as Lady Macbeth used to say.

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Replying to zebaa:
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By K@ty
27th Mar 2016 10:36

Apologies
Sorry about that lionofludesch. I am new to the site so was not aware of how to post new query.
Thanks for your advice

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