Tax and sub-contracting......

[DominicB]

Hi All,

Just wondering if someone could give some insight, I've recently become self-employed and registered with CIS and sent my first invoice to a contractor that i am sub-contracting for.

I understand that working as a sub-contractor I will have 20% tax taken from the total I sent but I didn't actually state anything but the final total for the days I charged for nothing about any tax. Is this incorrect or should I have stated the tax on my invoice.. and when the money is sent to me minus the tax how do I prove to the tax man and thus claim that money back?

many thanks

 

[Karin]

i would have thought they would have asked for your total fee? as they need the invoice for their records. think bout how it's shown on an invoice when you buy something. fee, tax breakdown, amount due. in practise to you it may not make a difference as they'll have your UTR number and sort it out, but they'll likely tell you what they need to see surely? i just state everything so everyone is clear what is going on - you don't want the payroll person taking another 20% off the rate you've already adjusted yourself!

 

[Leesparkykent]

The firm your subbing to should provide you with a statement stating what they've deducted and paid.

 

[telectrix]

and bear in mind that CIS does not apply to maintenance work/alarms & security installs/CCTV. ther eshould be no tax stopped for these.