tax on my labour? (1 Viewer)

big john

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i have invoiced a client and he has just emailed back asking for my labour costs because he has to tax me on that.
what is he goin on about?
cheers
john
 
At a guess he is trying to say he hired your staff and wants to deduct them 20% tax cis payments
 
He is trying to split the invoice John , its to do with VAT , tell him its a lump sum for the job
Are you charging him VAT ?
 
He is trying to split the invoice John , its to do with VAT , tell him its a lump sum for the job
Are you charging him VAT ?

yes im charging him VAT

---------- Post added at 07:29 PM ---------- Previous post was at 07:26 PM ----------

Does that change anything?
 
I have had the same problem a few times , he is trying to split your invoice into labour/hire
as he dont have to pay VAT on a new build ( i think thats what i was told ) i just told them that the whole job is a lump sum price and unless he can give me a VAT exemption that i can check with the VAT people then he pays VAT.

I assume you have a CIS 6 ( although its just a UTR number now ) , and dont be taxed at 20% by your customers ?
 
isnt the customer better of claiming vat back on both laboure and materials (lump sum) appose to just materials or can you only claim back vat on materials ?
 
i would say that he is trying to stop you 20% CIS TAX ON YOUR LABOUR , NOT vat unless its a self build / new build
re invoice him and put your labour in at 33% of contract initial price

---------- Post added at 07:39 PM ---------- Previous post was at 07:39 PM ----------

is your UTR gross payment or 20% deductions ???
Note some firms will now stop u 20% on full value
 
i would say that he is trying to stop you 20% CIS TAX ON YOUR LABOUR , NOT vat unless its a self build / new build
re invoice him and put your labour in at 33% of contract initial price

---------- Post added at 07:39 PM ---------- Previous post was at 07:39 PM ----------

is your UTR gross payment or 20% deductions ???
Note some firms will now stop u 20% on full value

its a new build

---------- Post added at 08:17 PM ---------- Previous post was at 07:41 PM ----------

sh it,no its not thats his other job ive got up,this one is for decoration
 
kiss 20% away then mate , hope u can blag him into deducting 20% of 33% of the contract value
i.e job value £1000 - labour approx a 3rd (333£) have 20% deducted off that !!!!!!!!!!!!!!

KUUUUNNNNNTTTTZZZZZZZZZZZZZZZZZZZZ
 
£1000 / 3 = £333.33
£333.33 /100 = £3.33
£3.33 x 20 = £66.66
£ 333.33 - £66.66 = £266.67 thats per every £1000 and 26p for every pound

so £3,546 x .26p =£ 921.96

better tax any jobs
 
i would say that he is trying to stop you 20% CIS TAX ON YOUR LABOUR , NOT vat unless its a self build / new build
re invoice him and put your labour in at 33% of contract initial price

---------- Post added at 07:39 PM ---------- Previous post was at 07:39 PM ----------

is your UTR gross payment or 20% deductions ???
Note some firms will now stop u 20% on full value

so basically i just add more money to his jobs to allow for this bolloxs
 
If you can get away with it bud !!!
Then youl get stopped more dollar !!!

Big john are you LTD or Sole trader

If u can blag just invoicing for hire then wont attract any tax , as just relates to labour
 
If you are subbying yourself out, then yes, your labour is subject to 20% tax.

Don't forget though, come the year end, all the excess tax you pay together with allowable expenses, can be claimed back.

Just doesn't help cash flow. Although, of course, it does mean you don't get a huge tax bill at the end of the tax year.
 
This is why when we receive a new order we officially notify the customer of our Unique Tax Reference no. and our VAT no. (along with bank details and EL/PL certs). I will say this again VAT is always standard rated on Contract Scaffolding irrespective of the tax status of the site. (The main contractor will claim back VAT paid out within his quarterly returns.) This is not the case however when HMRC revoke your tax status.
 
We get charged 20% CIS of most firms but claim nearly all it back at the end of tax year then pay most of it out again in corparation tax. It used to be a big bugbearer of mine but have learnt to just live with it. the joys of the merry-go-round.
 
Sorry to bring this thread up again but I am after some clarification. Say I do a job and price it at £250 + VAT. Would that then break down as:

Hire - £166.67 + £33.34

Labour - £83.33 + £16.66

Total - £250 + £50

My customer would then deduct the 20% of the labour cost only and when payment is made they should send me through a monthly statement detailing the deductions they have made and paid on my behalf.

I have just found myself in this boat and need to send out some invoices but I'm a bit unsure.
 
just seperate 33% of job value as labour then let them deduct 20% against that
 
I think that is what I have done there scaffy. Job is £250 + VAT. Therefore 33% of £250 is £83.33 which is labour. Other 66% is £167.67 and is hire.

Could someone send me an invoice they have sent out (Blank out sensitive info :cheesy:)
 
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