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The Book-keepers Forum (UK) -> General Book-keeping & Accounting -> For CIS subcontractors, after what level of earnings they start to pay tax instead of getting tax back ?
Post Info TOPIC: For CIS subcontractors, after what level of earnings they start to pay tax instead of getting tax back ?
Adrian99


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For CIS subcontractors, after what level of earnings they start to pay tax instead of getting tax back ?
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Hello !

I have seen the general perception of some builders that after tax return they have to cash in at least £1500 no matter their earnings level.

Let`s say they do not have any allowable expenses at all, and excluding the NIC Class 2, please if someone could help me with this. 

Thank you. 

 

 

28,000 X 20 % = 5600 tax collected before receiving the payment 

NIC 4 = 28,000 -7755 LEL = 20245 X 9% = 1822.05 NIC Class 4 to pay 

Tax = 28,000 - 9,440 Personal all = 18,560 X 20 % = £  3712 Tax to pay 

5600 collected - 1822.05 NIC 4 - 3712 Tax = 65.95 £ tax to claim

 

Am I right that after 28,000 level of earnings by a self employed subcontractor there is not much tax to claim back ?

 

 Thank you for your help, 

 

Adrian 



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This is just my personal opinion. Advice should be sought from a suitably qualified Accountant.

 

P.S. I only ride a motorbike because I want to dry my clothes faster 
Sharon Eyre


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yes thats right-unfortunately the NI class 4 normally takes any tax refund that was due

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Regards

Sharon
RobH


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and of course if the subbie earns enough to put him into the higher tax rate then he'll be paying tax over rather than getting a refund. I did read an article about the 'brawn drain', there's a lack of good bricklayers and so the demand has meant they can earn up to £100k!

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Rob
www.accounts-solutions.com
Sharon Eyre


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I have a few subbies on my books that earn in excess of £100k - maybe I am in the wrong job!!!

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Regards

Sharon
Adrian99


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Thank you Sharon and Rob,

Yes, I've joined construction industry in November, and yes, the earnings are quite good.
I am not very qualified but if work good hours and my earnings exceed the time when I was working as accounts assistant in the City of London.
Although this is not how I see my future, this is the way I am trying to raise capital for my bookkeeping business.

Wish everyone a great weekend.

Adrian








__________________

This is just my personal opinion. Advice should be sought from a suitably qualified Accountant.

 

P.S. I only ride a motorbike because I want to dry my clothes faster 
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