Cis 20% deduction from materials cost

[plumber101]

Hello all

Will be using sub contractors for first time soon and have read the CIS website info as much as time allows.

Do i need to deduct 20% from the material costs that sub contractors invoice me for as well as 20% from labour?

Any tips and advice appreciated

Thanks

 

[gasmanrob]

Depends if they list it separately

if you get a bill for £300 then you'd stop 20% on £300

if you get a bill that says materials £100 labor £200 then you stop 20% on £200

some me people I do stuff for have me do all the working out for them so the invoice states less 20% =£'s X

 

[AWheating]

your subbys need to charge you extra ontop of the materials for the service of supplying materials. 30-40% should do.

or you could get the materials orderd and on site to save any issue/ arguments.

same for petrol expenses, you have to charge cis, so your subbys will have to charge you more than the cost of the petrol to cover there losses.

 

[lame plumber]

you need to register your employing subbies with hmrc before you start taking their money

 

[Worcester]

your subbys need to charge you extra ontop of the materials for the service of supplying materials. 30-40% should do.

or you could get the materials orderd and on site to save any issue/ arguments.

same for petrol expenses, you have to charge cis, so your subbys will have to charge you more than the cost of the petrol to cover there losses.

They don't have any losses, the CIS dedcution is offset against any NI or IC that they owe HMRC at the end of the year - You've just offered them a way to get paid twice for the same thing

If they submit their invoices correctly, there is no CIS deduction on materials

 

[AWheating]

you do it either way, person who holds the receipt has paid in and uses it in there accounts to claim back.

you have to pay it on petrol, its in the cis tax handbook.