Self Employed - Paying workers

[philr08]

Hi all, i went self employed last november and had been working as a sub contractor for a company who done all my cis tax for me. Im now working for myself but have been paying someone else to help me week by week. he is also self employed but if i get the money payed into my account from the client and then pay him, what happens with my tax form at the end of the year?? will i have to pay all the tax on all the money we have earnt??

 

[nikmet]

get him to invoice you for his labour

 

[Frosty69]

Hi mate the government are running loads of free seminars at the minute for sole traders only. It covers in detail everything about tax, business expenses and other expenses, you can claim for loads more than I thought I could! It's well worth the two hours of your time! Look hmrc website for dates and places

 

[SirKit Breaker]

get him to invoice you for his labour

If only it was that simple. Unfortunately there is something called the CIS scheme.

Cheers..........Howard

 

[telectrix]

afaik, if your helper is not a ltd. co., then he should be cis registered and you should stop his tax. then pay it to the leech. ( taxman )

 

[ExArmy]

If only it was that simple. Unfortunately there is something called the CIS scheme.

Cheers..........Howard

what is the point of the CIS scheme? i'm currently on it and to be honest, I wish i wasn't.
why can i not invoice the contractor i work for, and then get paid gross, keep all of the money and then pay the tax i owe at the end of the year?

 

[telectrix]

because the taxman wants to stop the fly-by-night, cash in hand , pay no tax brigade. used to be rife in the construction industry.

 

[SirKit Breaker]

what is the point of the CIS scheme? i'm currently on it and to be honest, I wish i wasn't.
why can i not invoice the contractor i work for, and then get paid gross, keep all of the money and then pay the tax i owe at the end of the year?

See the post below yours, Tel has hit the nail on the head.

Cheers....Howard

 

[nikmet]

Nothing wrong with one sole trader invoicing gross from another

 

[nikmet]

what is the point of the CIS scheme? i'm currently on it and to be honest, I wish i wasn't.why can i not invoice the contractor i work for, and then get paid gross, keep all of the money and then pay the tax i owe at the end of the year?

You can, as long as you only work occasionally for them

 

[philr08]

what if the worker i'm doing work for isn't a contractor under the cis?? do I pay my tax at the end of the year??

 

[Octopus]

because the taxman wants to stop the fly-by-night, cash in hand , pay no tax brigade. used to be rife in the construction industry.

Used to be rife?????????????????????