L
Lazlo
OK here is the scenario....you work for a builder who is CIS registered, you are CIS registered too, he deducts your tax from your invoice to him @ 20%, this is for your labour only and excludes material costs. However you have purchased 10 double sockets for the job @ £4 each and sold them to the builder @ £6 each.
Your invoices shows-
£100 Labour
£60 Materials (10no. double sockets @ £6 each)
He pays you-
£80 Labour (20% deducted under CIS scheme)
£60 Materials
I show £20 taxable income on your accounting records from the markup on the materials. You show no taxable deductions on your labour as you have already paid this through CIS scheme.
How is this tracked in amongst the 100 other invoices to customers direct which are not under the CIS scheme??
Your invoices shows-
£100 Labour
£60 Materials (10no. double sockets @ £6 each)
He pays you-
£80 Labour (20% deducted under CIS scheme)
£60 Materials
I show £20 taxable income on your accounting records from the markup on the materials. You show no taxable deductions on your labour as you have already paid this through CIS scheme.
How is this tracked in amongst the 100 other invoices to customers direct which are not under the CIS scheme??
