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Hi,

ok im either stupid or something but did a days work for someone last month and a few days for someone else, we agreed a price per day and now they are coming to pay me they are saying they must knock 20% off and want my UTR number etc...

I said on your bike, you pay me the full invoice amount you con artist, etc etc...

anyway after then speaking with HMRC about this, they said by law they have to deduct 20% if taking on sub contractors with a UTR number and registered with CIS or 30% if the sub is not registered.

i have now registered on the CIS thing to resolve this, but who in the right mind would ever possibly sub out to someone to lose 20% of the agreed amount to the tax man which you have to mess around with at the end of the year to reclaim.

what a flaming nonsense, so the £450 I was hoping to get from one is now £360 or whatever it works out at, it's such a joke.

so if anyone wants me to work for them as a sub, my day rate is £225, why the hell should I say I'll work for so much a day to lose a wedge of it and potentially have to wait 12 months to get it back from HMRC.

how can you possibly say I'll work for so much per day which you rely and be happy to wait to offset or reclaim the balance.

I will only now work directly for the end customer, HMRC also said be aware that if you sub out to ANYONE you will lose 20%, and they said kitchen fitters etc.

NEVER AGAIN..... NEVER!!
 
standard business mate no one likes paying tax! how was you paying your contribution before without a UTR number?
you would loose 20% if you paid the tax on the profit anyway,all that has happend is they've stopped it at source and stops the hastle of you doing it.
 
standard business mate no one likes paying tax! how was you paying your contribution before without a UTR number?

I have a limited business which I am an employee on PAYE, I'm not self employed or do self assessment etc.

I only take the absolute minimum salary to avoid paying any tax, or should I say the absolute minimum I can get away with.
 
Sorry, just to add its approx £110 a week I pay myself, about £450 per month, that's just to keep on the right side of the NI contributions and pay no tax.
 
Id rather not go into the finer points of it but I don't need to take a salary is the easy answer., so take the min I can and leave the rest in the bank. Ive been living on savings for the last two years, I'll probably start taking a proper salary in a couple of months, I should remove the money from the business.
 
if you are LTD under CIS you should still be stopped 20% at source if working as a subbie all that happens is the 20% you have been stopped gets offset against your companies profit (corporation tax).
 
If it's maintenance work it's not subject to CIS

I did not realise that, I just find it off that I was never told about this CIS thing, neither of them mentioned it and then they have the cheek to deduct it. If I want to take a salary, I'll pay tax and sort it out myself.
 
if you are LTD under CIS you should still be stopped 20% at source if working as a subbie all that happens is the 20% you have been stopped gets offset against your companies profit.

I had never subbed out before, well not officially.

if I do it again it will be a case of the invoice consisting of zero labour and a £200 rubber grommet.
 
CIS is only deductible at source, IF the work comes under CIS.
As has been suggested already, maintenance work is not under CIS.

IF you check with HMRC & explain what work you were doing, then they can confirm that the work is not under CIS.
This is all detailed on the HMRC website if you can find it.
 
i know what you mean. But the way i see it is you either get it stopped at source as it should be or you end up paying it in corporation tax any way. As the same money will more than likely end up as profit in your ltd company accounts some way or other so your not really loosing anything.
 
I understand why it's done but when you didn't know about it then have it deducted it's a joke.

not only that if you were to rely on so much per day to live on, it's not exactly going to help.
 

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