If I pay my gross subbie cis HMRC can I reclaim

I am net but two of my subbies are gross so I have paid cis twice

Didn't find your answer?

I have been stopped cis at source but had to pay my gross subbies the cis also. Can I claim one of the amounts back as I'm net 

Replies (7)

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RLI
By lionofludesch
21st Feb 2024 13:14

Not sure how you reckon you've paid twice but CIS deductions are not a tax in themselves. They are a method of paying tax.

Ultimately, you will be able to get credit for the tax you've paid, maybe against your own PAYE. Ask your accountant about it.

Thanks (2)
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By frankfx
21st Feb 2024 13:39

Say your subbies were net

Your cash out flows would equate to Gross.

Therefore your cash out flows are exactly the same.

for example

Subbie A is paid £1000 gross

Subbie B is paid £800 net

and you pay

HMRC £200 CIS tax which you have held back from Subbie B

This £200 is credited to Subbie tax account at HMRC.

You will observe £1000 leaves your bank account for A and B.

Do you have an accountant?

Thanks (2)
Replying to frankfx:
By Ruddles
21st Feb 2024 14:36

Yes, but ...

In that case the £200 CIS deduction could be offset against the deductions from his/his company's own receipts.

So the cashflow is not necessarily the same in both scenarios.

Are you an accountant? ;¬) ;¬)

Thanks (2)
Replying to Ruddles:
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By frankfx
21st Feb 2024 16:35

Ruddles wrote:

Yes, but ...

In that case the £200 CIS deduction could be offset against the deductions from his/his company's own receipts.

So the cashflow is not necessarily the same in both scenarios.

Are you an accountant? ;¬) ;¬)

Agreed

Thank you, your point is correct.
My example was to show that the Subbie payments cash outflow were the same,
avoiding the point of offsetting.
HENCE the accountant reference.

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By Paul Crowley
21st Feb 2024 14:52

PAYE is your friend

Tell HMRC that tax has been deducted from money you receive and then deduct it from the payments of PAYE and CIS that you owe them

But first, talk to an accountant. They all know things that you do not appear to know.

Your accounts are there to view for everyone. Most accountants would file less information.

Thanks (1)
Replying to Paul Crowley:
By Ruddles
21st Feb 2024 14:56

Paul Crowley wrote:
deduct it from the payments of PAYE and CIS that you owe them

If there are any such payments

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Replying to Ruddles:
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By Paul Crowley
21st Feb 2024 15:02

Probably not, no employees at all per companies house.

Best to try for gross payment, as waiting for the refund is agonising.

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