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Is Cis deducted on travelling expenses

If the contractor agrees to pay travelling costs - should they deduct 20% cis ?

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i Believe tax is deducted , but want to double check this is correct- 

 

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20th Mar 2019 21:58

NO

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20th Mar 2019 22:18

Assuming that HMRC have verified the subcontractor as a '20%' subcontractor then tax should indeed be deducted at 20% from the travel element of the payment. The list of items (materials etc) to be excluded when calculating the tax deduction is specific and does not include travel costs.

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to Wilson Philips
20th Mar 2019 23:04

Thanks for clarification

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20th Mar 2019 22:38

Wilson thank you for your valuable contribution yet again. I understood perhaps wrongly that round sum allowances were taxable as possibly disguised remuneration and that specific payments were ok. I apologise if I am wrong. Where the subcontractor is a limited company do the same rules apply?

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to carnmores
20th Mar 2019 22:43

It doesn’t matter if the subcontractor is an individual or a limited company - the rules for calculating the tax deduction are the same.

Not that it should make any difference, the questioner did not mention round sum allowances - I read it as reimbursement of actual travel costs.

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to carnmores
20th Mar 2019 22:44

https://www.gov.uk/what-you-must-do-as-a-cis-contractor/make-deductions-...

Take away the amount the subcontractor has paid for . . . fuel used EXCEPT for travelling.

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20th Mar 2019 23:01

Thanks Andy delphic to the end :-)

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20th Mar 2019 23:24

and if there is no contractual obligation to pay the travel?

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to carnmores
20th Mar 2019 23:37

The Scheme operates on a payment basis - if the subcontractor is paid then the tax deduction is based on that payment, subject to exclusion of specified items. I don’t see that contractual obligation is at all relevant.

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to Wilson Philips
20th Mar 2019 23:49

what HMRC state is the law is sometimes questionable. i was quoting the FA, any thanks again enough for the night my brain hurts

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21st Mar 2019 08:49

I vote yes.

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24th Mar 2019 12:14

"fuel except for travelling" means for example gas for fag lighters for those think of the environment and re-fill

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24th Mar 2019 12:14

"fuel except for travelling" means for example gas for fag lighters for those think of the environment and re-fill

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