Cis deduction - Invoice query from scaffolders

dig dug dan · Post: # 68147Post **dig dug dan** Sat Sep 10, 2011 12:11 pm

just had a scaffold ramp constructed to gain access to a garden with machinery.
Was quoted Â£300+vat. invoice arrived, and down the bottom it says "less cis deduction Â£12

total invoice now Â£248. Vat has been charged at Â£60.
Can anyone enlighten me as to why they have done this? do i effectively make Â£12 on their quote?

Sat Sep 10, 2011 12:29 pm

the numbers dont add up dan?
LLL

Pablo · Post: # 68149Post **Pablo** Sat Sep 10, 2011 12:38 pm

no they've invoiced you the total amount you owe them and done the cis calculation for you as well. You now owe that money to hmrc. The invoice should've been clearer and had a labour and material breakdown on it which i think is a legal requirement for your paperwork. I always ask for and detail the breakdown in my cis stuff anyway.

dig dug dan · Post: # 68152Post **dig dug dan** Sat Sep 10, 2011 1:21 pm

they have broken down the labour (60) and material, but, it does not say how i ma supposed to pay hmrc. I have never heard of this before, or know how to do it!

DNgroundworks · Sat Sep 10, 2011 1:27 pm

You need to be registered as a CIS contractor not a sub contractor i think

Pablo · Post: # 68154Post **Pablo** Sat Sep 10, 2011 2:18 pm

basically if you are involved in construction of any kind and you do anything along the lines of being a sub contractor or employing sub contractors then you have to be registered. Essentially it's a means of collecting income tax at source to try and stop all the fraud that takes place. It's easy to do and can all be done online in a few minutes but you have to contact them and register first. You then get a UTR number which is you reference for deducting tax or having it deducted. It's a bollocks to explain but is pretty simple. You don't have separate registrations for main and sub contracting. You'll get a severe kicking from hmrc if you're caught making and taking payments outwith of the scheme.