Share this content
0
2094

CIS return

Submitting my first CIS monthly return

Hi,

I'm confused with the Jargon!! filling out my first monthly cis, Total payments made - is that total payment before i have deducted the 20%

Invoice £375 labour - deduction £75 (20%) payment made £300 - which is it?  £300 or £375

Many thanks

 

 

Replies

Please login or register to join the discussion.

avatar
By jcace
23rd Nov 2017 21:58

The amount to enter in the "Total payments" box is the total before any deductions. Where applicable, it will include materials, but will not include VAT, if the subcontractor is VAT registered. So the amount in "Total payments" less the amount in "Materials" should leave you the labour amount on which the CIS deduction is calculated at the appropriate %.

Thanks (2)
avatar
23rd Nov 2017 21:59

Total payment is the gross amount £375

Thanks (1)
avatar
23rd Nov 2017 22:13

Thanks :) - he is not vat registered or any material costs, so a straight forward £375 total payment - £75 deduction and actually pay to sub £300

Thanks (0)
24th Nov 2017 08:15

I'm guessing you're a scaffolding firm.

Hire of scaffolding counts as materials. Pay for blokes putting it up and taking it down does not.

Just in case it matters.

Thanks (0)
avatar
to lionofludesch
16th Apr 2018 15:40

We got stung by this a few years ago. HMRC now states that scaffold does not come under materials costs, any cost for the purchase of scaffold is claimed against tax via the contractors own accounts. 20% tax must be charged on the entire invoice. We had a scaffolder go into liquidation with huge HMRC debt, and as we had "incorrectly" deducted tax, as the employer, they came after us for it! I had times and dates of the conversations with the helplines when they advised me to charge 20% on the labour element only which basically removed the liability from us (they found the recorded conversations). If you ring the helpline now they do, however, say its 20% on total invoice. If I now do not do this our business is liable to a huge fine and the loss of our own gross status for CIS purposes. Just wouldn't like to see any other business go through the investigations we went through. We were following HMRC advice at the time and also the advice or our scaffolders accountant who told them to break up the invoice 1/3rd labour and 2/3rds materials. Please double check with HMRC as they are tightening up.

Thanks (0)
Share this content