Hi everyone, Help. As you know,I have just started out in my own company with a few clients. One of them is a Construction worker whose book-keeping I do. I invoiced him and he has kept 30% of the invoice for the CIS rules tax. Now I am confused. I build accounts not buildings!!! So why did he deduct the tax for CIS? Any advice please. Cheersx
Well I'm no expert but I don't think he should have deducted 30% tax. He may be registered for CIS, but you are not. Neither are you a sub-contractor in the construction industry.
Many thanks for your prompt reply. I thought the same too. I have read the whole blurb on the CIS rules on HMRC (looks like I am becoming an expert!!) and I am sure I am not under CIS.
Now I need to get the rest of my 30% back!!!!! Ekkk.
Explain to him that he only deducts 30% from unverified subcointractors who fall within the auspices of CIS. Make sure he doesn't pay this over to hmrc and divert it to you!
He shouldn't be deducting the 30% from your invoice as you are nothing to do with the Construction industry and won't be registered under it either. I have a client who is CIS reg and he does not deduct anything from my invoice. However the subbies that occassionally work for him have a special reg number unique to them that they show on there invoices to him for the deduction.
You will need to explain that you invoice is just as it is, I'm sure he will understand once explained to him.
I agree with all of the above. Is it just you he deducts 30% or does he do it for all the invoices he receives - telephone, fuel bills etc.... now theres an idea!
Thanks everyone. You were all right and he shouldnt have deducted it. I emailed him earlier and he has already transferred back the 30% he deducted into my bank account. Now thats a brilliant client huh!
