Tax

Discuss Tax in the Business Related area at ElectriciansForums.net

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Martinm

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Well Folks,

Im a self-employed electrician,working for a sub-contractor at the moment.

Need some advice on how to ensure that he is paying my tax and keeping the books straight, Surely I am entitled to ask him for a type of slip to keep record of my employmeny and tax payed..

Any ideas would be appreciated..
 
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DurhamSparky

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  • #2
yes its called a remittance slip and CIS deductions thingy!!
 
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mayfair

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  • #3
Tax ....I thought bad language was automatically edited
 
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Martinm

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  • #4
Haha,


Are sub-contractors obliged to issue these remittance slips??

Is it just basically a pay-slip??
 
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Geordie Spark

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  • #5
The only tax I know anything about are the ones fixing me carpet to me floor.
 

telectrix

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Mentor
Arms
Esteemed
you should have some sort of paperwork showing that he has deducted tax. other wise, it's you that the suits with court papers will be chasing come the end of the financial year.
 
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DurhamSparky

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  • #8
hahaha! tacks!! i once loaded a tatty with about 60 tacks and launched it at a neighbours house when i was 14 or some thing!! i got grounded for 3 weeks!
 

Des 56

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Arms
Esteemed
I think you sou should be issued with a payment and deduction statement for each seperate month

These used to be off the contractor,but they are now generated by the Revenue

The contractor should be notifying them of your earnings each month, they tell him what to deduct and issue the statement with a verification number for him to copy for your records

He will be in brown street more than you if he messes this up
 

ExArmy

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Arms
is it compulsory for a subcontractor to get paid CIS? previous contractor did, new one doesn't. to be honest I prefer just getting it all and then paying the tax man end of year, instead of paying flat 20% tax all year round and then getting a lump sum back at the end of the year. it's all the same money, but i prefer getting it all now seeing as i'm starting up and have alot of expenses which i can put againts tax
 
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Welchyboy

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  • #13
Unless you have a Cis tax exemption, (which you basically have to invoice over £30,00 of Cis per tax year to obtain) he should be paying your Cis, if he is paying you gross then he should not be, but as long as your paying your tax and declaring it like you should it's his problem and he will get tugged over it not you, you have also got to be careful that you actually qualify as a sub contractor too, hmrc are getting hot on this depending on your situation you may be classed as an employee, and you should also have a contract in place with the contractor declaring you are a subbie
 
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oldtimer

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  • #14
He needs to give you a business headed stationary with details ie how much he paid you and the taxman if he puts you off or refuses then alarm bells should be ringing in your head. You need to contact the Inland Revenue and they can tell you if he is paying your tax plus do you have other sources of income because the taxman is not happy if you are subcontracting with only one firm ie you should have at least 3 sources of income. So if you earn say £29000 of him and he pays you £24000 and the taxman £5000 thats about right so if you owe more then the taxman gets you to pay . ie if you have a 900L tax code thats £9000 if you earn £29000 - £9000 = £20000 at 25% tax thats £5000.

Now if he has not paid then the taxman will say to you that you earned £24000 less £9000 =£15000 at 25% =£3750 tax bill and if you aint got it then its fines penalties and a personal loan putting you further in a hole so do not suppose he is sorting or paying it find out because there is a lot of guys out their who have been badly burned
 
Can someone clarify something? I have a mate who works with me on bigger jobs. We are both self employed, I.E declaring our earnings seperately. I get paid by customer and give him his daily rate. I put in my tax return my profit less the money I pay him (plus parts etc). He is doing his own books and declaring the income he gets from me and paying tax on his earnings. Is this right? We are talking about less than £6000 a year.
 
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Plonker 3

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  • #16
If you are paying him you should be deducting CIS payments, also he should be giving you a invoice for monies owed too him.
 
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Deleted member 26818

  • Thread Starter Thread Starter
  • #17
Well Folks,

Im a self-employed electrician,working for a sub-contractor at the moment.

Need some advice on how to ensure that he is paying my tax and keeping the books straight, Surely I am entitled to ask him for a type of slip to keep record of my employmeny and tax payed..

Any ideas would be appreciated..
Yes you should be getting aome paperwork, stating how much you have been paid, and how much tax has ben deducted.
It's not a big deal if you don't get the paperwork, as it's not your responsibility to ensure your employer pays the tax.
Keep a record of how much you have been paid, shouldn't be a problem if you're paid direct into your bank.
You can then easily work out how much tax should have been paid, divide what you have been paid by 4.
When you fill out your Self Assesment, you just put this figure added to any other tax paid through other contractors and Bob's your uncle.
As long as you keep copies of your Bank statements and any invoices, you'll be fine if HMRC ever investigate.
 
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Plonker 3

  • Thread Starter Thread Starter
  • #18
Yes you should be getting aome paperwork, stating how much you have been paid, and how much tax has ben deducted.
It's not a big deal if you don't get the paperwork, as it's not your responsibility to ensure your employer pays the tax.
Even if you are PAYE, you are responsible for ensuring you pay the correct amount of tax. Occasionally it will be short and they will just take it off nexts years code.

As others have said you should be getting a wage slip which states all deductions like tax and NI. If you have this then keep it as prrof that you have paid it until you get either your year end P60 or P45
 
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Deleted member 26818

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  • #19
Even if you are PAYE, you are responsible for ensuring you pay the correct amount of tax. Occasionally it will be short and they will just take it off nexts years code.

As others have said you should be getting a wage slip which states all deductions like tax and NI. If you have this then keep it as prrof that you have paid it until you get either your year end P60 or P45
Whilst I will agree in principle, that everyone irrespective of whether they are PAYE or self employed are responsible for paying the correct amount of tax.
If a person's employer or contractor makes the deduction, and then doesen't pay it, it is not your responsibility.
 
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Plonker 3

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  • #20
Yes, as long as you have proof that they did deduct it the way of a wage slip.
 
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oldtimer

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  • #21
Whilst I will agree in principle, that everyone irrespective of whether they are PAYE or self employed are responsible for paying the correct amount of tax.
If a person's employer or contractor makes the deduction, and then doesen't pay it, it is not your responsibility.
Thats fine if you can prove it but the OP was concerned enough to ask the question and as been said if you dont have the documentation then the IR want the money from you
 
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Deleted member 26818

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  • #22
Yes, as long as you have proof that they did deduct it the way of a wage slip.
No you don't.
All you need, is proof that you have been paid.
If there is ever an investigation, and it is found that the contractor has not paid any deductions to HMRC, the contractor would have to prove that deductions were not made.
Under the CIS scheme, you as a subbie don't even have to be registered.
The contractor asks you for your UTR number, they then phone the CIS hepline and verify you.
If you don't have a UTR number, you will be deducted at 30%, if you do have a UTR number, you will be deducted at 20%, or if you are exempt, no deductions will be made.
If the contractor doesn't follow these procedures, they are in the brown sticky stuff, not you.
If you were that way inclined, and you had been paid gross by mistake, you could say that the gross payments were net, the contractor would then have to prove that they weren't.
 
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oldtimer

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  • #23
Hold on before this debate goes further what is the comment of the OP or are we all going to end up talking to ourselves again.

So OP give us your thoughts or I will unsubscribe
 
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Plonker 3

  • Thread Starter Thread Starter
  • #24
No you don't.
All you need, is proof that you have been paid.
If there is ever an investigation, and it is found that the contractor has not paid any deductions to HMRC, the contractor would have to prove that deductions were not made.
Under the CIS scheme, you as a subbie don't even have to be registered.
The contractor asks you for your UTR number, they then phone the CIS hepline and verify you.
If you don't have a UTR number, you will be deducted at 30%, if you do have a UTR number, you will be deducted at 20%, or if you are exempt, no deductions will be made.
If the contractor doesn't follow these procedures, they are in the brown sticky stuff, not you.
If you were that way inclined, and you had been paid gross by mistake, you could say that the gross payments were net, the contractor would then have to prove that they weren't.
I was talking about being "on the books" not as a subbie. I was always led to believe you should recieve a statement from anyone who deducts CIS payments.
 

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