allan666
Well-known member
fooking hell this ones complicated
tax on my labour?
- Thread starter big john
- Start date
Spunkywads26
Well-known member
Tell me about it. Have always been gross payment before but been put on standard 20% and not really got a clue what to do.
philliosmaximus
Moderator
Cash , then they can have their trusted to collect 
S
southernpoofter
Guest
we've hit this problem a few times ...deduct VAT @ the standard 20% unless the contractor can give you a copy of his builds VAT excemption cert,dont just assume as a new build its zero rated as sometimes theres variations to it and it could come back and bite you in the bum
deduct Income tax at the standard 20% off 100% of the invoice price although it may lower your cashflow it also lowers your tax liability and you'll get a big fat rebate back at the end of the year ( dont forget to ask for your tax deduction cert from them to give to hmrc as proof of the deduction)
if its only a small through the books job and not for a main contractor that cant issue you one then dont deduct the tax on the invoice ...the declared money in your account will simply be offset by any deduction credit that hmrc will already be holding
deduct Income tax at the standard 20% off 100% of the invoice price although it may lower your cashflow it also lowers your tax liability and you'll get a big fat rebate back at the end of the year ( dont forget to ask for your tax deduction cert from them to give to hmrc as proof of the deduction)
if its only a small through the books job and not for a main contractor that cant issue you one then dont deduct the tax on the invoice ...the declared money in your account will simply be offset by any deduction credit that hmrc will already be holding