Tax question (1 Viewer)

StoneScaffoldingLtd

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Not too sure if this has been asked already but here goes anyway.

Seems a bit of a grey area this one for us.

We are a limited company and work for both commercial and domestic clients.

Up until recently we have never been asked to split the labour content from the materials element on a scaffolding job.

We were asked to price a rear access platform for a solar panel company last week and they said they would be stopping our tax out of the price.
We don't usually get this as we normally invoice and then pay the corporation tax at the end of the tax year.
We are not really subcontractors so is this correct what the company were asking of us?
 
Sounds similar to the way us self employed scaffs would like to be really self employed instead of having to deal with umbrellas(accountants taking our tax and making money from it . it doesnt seem right at all , hopefully your busy and can say no the job.
 
Sounds similar to the way us self employed scaffs would like to be really self employed instead of having to deal with umbrellas(accountants taking our tax and making money from it . it doesnt seem right at all , hopefully your busy and can say no the job.

We did turn it down as I didn't feel like it was the correct thing being asked of us!
Had I pre known about it I would have banged an extra 30% on top for the hassle!
 
As a limited company you will have your HMRC tax exemption certificate which means you will pay your own taxes. When setting up any contract you should be informing your client of your EL&PL, vat reg no, Company reg no, and your UTR. (and bank details for payment)

If the company are going to deduct tax it may well be they have cash flow problems. Best to steer clear as you have done.
 
simple really mate you will only have tax deducted from the invoice on labour and not on your materials as your work is carried out your duty is to supply labour and materials so basically split the invoice 60% materials 40% labour then you will only be deducted tax on your labour and not the full amount of your invoice say you had an invoice for £1000.supply materials and transport 60% =£600 labour £400.they will tax you on the 400 its nothing to do with a cash flow mate its just not everyone is a ltd company they will deduct the tax off and send you a tax cert which you give to your accountant and he will reimburse any tax owed at the end of the financial year any problems approach your accountant and he will tell you how it works it can work well on your behalf because it reduces your tax bill if you have any problems drop me a thread
 
did you approach your accountant over the labour an materials stone scaffolding its not a bad way of reducing your tax bill
 
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