I am in a debate on another forum (I know traitor, but I was getting restless) where someone has commented that a sole trader contractor can off set the CIS tax that they have had deducted against what they have deducted from their sub-contractors and only pay over to HMRC the net amount, I believe this to be incorrect and this is only possible if you are a LTD Co, a sole trader would have to pay any tax they had deducted over monthly and only claim back what they had been deducted at the end of the year via their SA.
Just wondered what others views were, cheers
__________________
Doug
These are only my opinions of how I see things and therefore should not be taken as advice
Funnily enough, I've just had that same discussion with a client not half an hour ago.
Ltd Co I took on a couple of months ago, had previously worked as sole trader and been deducting CIS from his subby but not registered. Got his Ltd Co sorted out and then registered the sole trader for CIS. Just got the authorisation code this morning . Said to him that he would have to pay subbies tax over. "What do you mean, contractor already deducted it, that means I'm paying it twice" Because he'd (say) billed the contractor £2000 thus receiving £1600 and paid his subby £800 he assumed that covered both of them.
I have to say though that I dislike it immensely. If you're a Ltd Co you can offset it but not as a sole trader, which to me is unfair.
__________________
John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
Thanks for the replies, on my phone so not sure if this link to the thread will work
https://www.ukbusinessforums.co.uk/threads/cis-do-i-need-to-pay-it-as-an-agency.397171/page-2#post-2924469
If not will reply when back on the computer, cheers
__________________
Doug
These are only my opinions of how I see things and therefore should not be taken as advice
Oh now, John use to post on there, not sure if he still does.
But also SteLacca is a Manchester man an ex HMRC man so (usually) really very much on point, is prolific on Aweb and one of the ones I usually trust. Just shows how easily things can be wrong even from the knowledgeable bods.
Good shout!
__________________
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
I did start to question myself especially after Stelacca first reply disagreed and who I have read plenty of answers that they have given both on the UK forum and aweb
__________________
Doug
These are only my opinions of how I see things and therefore should not be taken as advice
Thanks Joanne & John for the replies, I was just sneaking around on other forums as a bit of light reading whilst waiting for things to hopefully pick up on here, I regularly read posts on the UK business forum, AAT forum as well as Aweb you sometimes get some good threads which are well worth the read not just for the educational value but also for a bit of a giggle.
Hi John
Totally agree that the rules should be the same for sole traders & partnerships as it is for Ltd Co in offsetting CIS
__________________
Doug
These are only my opinions of how I see things and therefore should not be taken as advice
When I saw Stelecca's post I thought ooops have I got it wrong, as like you say, he's well respected. Turns out he only has Ltd clients in CIS so he's forgiven lol.
I used to post on there but haven't for absolutely yonks, however just started back there on and off about a week ago but I'm going to become a full member and use it for SEO soon.
Funnily enough I questioned something Cyndy posted earlier today. I'm Justintime on there.
When I saw Stelecca's post I thought ooops have I got it wrong, as like you say, he's well respected. Turns out he only has Ltd clients in CIS so he's forgiven lol.
I used to post on there but haven't for absolutely yonks, however just started back there on and off about a week ago but I'm going to become a full member and use it for SEO soon.
Funnily enough I questioned something Cyndy posted earlier today. I'm Justintime on there.
So come on - which forum?
