I am working on my own for the next few days as my boss is on holiday and would like to get some form of answer to try to impress both the client and my perspective boss.
I have been working on a CIS client today and they have asked me how hard it is to change to Gross Payment Status as they are getting tax deducted at 20% at the moment. I have read the HMRC guidence and it looks both long and confusing.
I can understand why the client prefer to use this method as they keep the money in their bank instead of HMRCs.
However, I have no experience of how to apply and how likely it is that their application would be accepted so any pointers or assistance would be great.
I'm on a vertical learning curve, I thought AAT had prepared me for most questions but everyday I find something else that I do not know. I can see now that experience is as important as the exams, if not - more so.
Thanks
Ben
-- Edited by woody88 on Tuesday 21st of June 2011 01:58:52 PM
It's not difficult as long as they meet the requirements - think it's £30k of qualifying income per director/partner, plus having a good CIS/PAYE payment/filing record.
If your client is a partnership, it will probably mean that they won't get a tax refund at the end of the year (under SA).
If they're a limited company, they will normally be able to offset CIS deducted from subbies against CIS deducted by customers, so they will presumably have to start paying CIS/PAYE on a monthly/quarterly basis. They also won't have a nest egg built up with which to pay their CT.
Lots to consider. Would hold off from answering to the client directly.
this is a site for bookkeepers and accountants so why the hell would we need to use the services of another firm of bookkeepers or accountants?!
quite apart from the fact that you have clearly picked on ONE very old post about the subject and that you would clearly have been googling to find both this site and theirs, unless of course you are connected to the said company in which case it's blatant advertising/link bulding and therefor for spam.
if you are not connected to said company then welol done you for seeing the light and not relying on your mate down the pub said/not being able to distinguish between what is correct information via Google searches and actually taking on board a 'professional' to do your accounts etc.
But if you are going to waste our time and say they are good, at the very least do a proper review. It's a pointless post for this site Anyway.
-- Edited by Cheshire on Wednesday 11th of January 2017 06:20:59 AM
__________________
Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
It's a shame about Ben not being able to impress his boss though, isn't it?
lol. I should hope Ben has impressed his boss at least at some point since 2011!
My pointless post comment was aimed at the newbie who dared to post a link a few days ago - but of course Mr M the Mod Man Shaun has been in like a ninja as usual and sorted it.
__________________
Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
