I have a client (sub-contractor) in the CIS industry, he recently did a job and in his invoice he say 50% of the cost is Labor. However, he was paid all the money in the invoice except VAT charges (because VAT reverse charge applied). The fact that VAT was with held by his client, tells me that he was dealing with a contractor and therefore should have suffered CIS charges on the 50% labor charge. I have asked the client to go back to his client and confirm and he came back and just answered no CIS suffered.
Is this correct? can there be a situation where VAT is withheld but CIS is not charged? should i insist that they go back and get cis sorted?