Hello, Gosh I'm new to this forum and wonder if anyone can help. I have a customer who is a small builder and is registered as a Contractor. He used a local company for some groundworks, and was quoted a price, which was accepted. My builder was told that this other company had a full certifiate and paid them gross. When the invoices came through to me I realised they still need to be verified etc., this all threw up the fact that they do not hold a full certifcate, should be 20% net. We have asked them to re invoice to show the labour and materials, which they have not done as yet. on Looking at the HMRC website is says that a reasonable estimate can be used in cases like this. Both companies could come under HMRC checks if the labour is not in proportion to the materials. Is there a general guidline percentage for labour/materials ? I know its a tricky one ! sorry !
