Construction Industry Sceme Query

What are your veiws on how to treat this grey area

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We have a Subcontractor that hires us a machine complete with driver on a construction site.  We both agree to treat this invoice under CIS.

The same subcontractor provides just machinery hire on a different construction site.  We both agree that these invoices do not fall under CIS.

If they now provide a machine complete with driver to the second construction site, do the original machines on hire there remain outside the scope of CIS, or does the introduction of labour to this site, bring everything there under CIS?

Thank you for your thoughts

Replies (5)

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By CJaneH
21st Oct 2016 16:48

If the invoice for the first site charges separately for labour and hire then surely only the labour will be subject to CIS tax.

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Replying to CJaneH:
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By scorbett
21st Oct 2016 16:58

No, unfortunately the hire of the machine will be included under CIS, as it is complete with Driver.

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By CJaneH
21st Oct 2016 17:05

I stand corrected. There was a similar query in Feb 2015

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Replying to CJaneH:
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By scorbett
21st Oct 2016 17:14

Hi CJaneH - Can you post a link to that query please, I can't seem to find it?

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By In a Daze
21st Oct 2016 23:33

If you read CIS 340 paragraph 3.14 the rules are quite clear you will have to make a deduction. However, if the contractor invoices for consumables separate these can be classed as materials. hope this helps

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