Lookig for some help please with how to deal with CIS if both contractor and subcontractor.
I work for a builder who is 20% cis deduction and he has a contract working for a main contractor on a developement. My builder has a plumber who he is using on this job but plumber has CIS Gross status.
If for example the plumber invoices for £1000 labour - he will get paid the full £1000.(as gross status)
When my builder invoices the main contractor for the services of the plumber and adds a 10% markup, he invoices for £1100 - however he will only get paid £880.(has 20% cis deduction) - therefore a shortfall of £120 to pay the plumber. Is this the correct treatment? How do you deal with the shortfall??