my partgner is registered for CIS - and currently we invoice our gross less 20% CIS Tax payments.
i.e. Invoice Gross = £100 less 20% @ £20 net = £80
we are now VAT registered and i am unsure where to apply the VAT element on the invoices i.e. would it be after i have come to my Net value then i appluy the 17.5%.
also I pay my CIS TAX ELELMENT each quater to the HM Revenue - once the VAT is applied do i now pay this amount quarterly do - ensuring that i put this asside.
The VAT needs to be calculated on the gross invoice amount before the CIS tax has been deducted. The output VAT will need to be included on your VAT return each quarter, the timing of which will depend on which VAT scheme you use.
hi peter thanks for that - i have another question
1. when i am tendering for contracts work and providing a price for the whole job - when i quote for the job - do i include the VAT and deduct the CIS Tax in my submission or do i just do a full quote for the price of the job and then add this in afterwards? - as i am unsure as to how i should go about this.
2. Also - do you know of any good construction softwares that i could use to keep track of all my invoices etc...
When my CIS clients do a tender I believe they quote the job net, but if I was you I would check with the contractor as to how they want to receive it.
I use Sage Line 50 and also use the CIS add on for my contractor clients.
