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