Hi, our Company uses a lot of Subcontractors who which we verify and get all the relevant information needed before payment, however there has been a few instances which has questioned how and when to deduct CIS.
1. Do we deduct CIS from retentions held by the subcontractor? (They are Net tax and have invoiced us with the retention balance)
2. If they are registered for CIS but the work they have done on a one off job is excluded from CIS (As per HMRC's Guidelines) e.g. Laying down cabling. Is this still subject to CIS Deduction?
3. If the client is not registered for CIS, but the work done we believe is subject to CIS - We should deduct CIS at higher rate of 30%, Yes?
4. If we forget to deduct CIS from a subcontractors payment - Should we ask for the overpayment to be returned - Who's responsibility is it?
Any help will be appreciated.