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Post Info TOPIC: Offset of CIS Tax


Guru

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Offset of CIS Tax


 

Hi all

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



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Doug

These are only my opinions of how I see things and therefore should not be taken as advice



Master Book-keeper

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Hi Doug
How very dare you!! None of the rest of us do such things. noconfusewink So come on - which forum?

Start point for your opponent - https://www.gov.uk/hmrc-internal-manuals/compliance-operational-guidance/cog909230

Although you could be really swotty and quote the two acts at him/her!

 



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Joanne  

Fallows Hall Ltd 

Winner - Bookkeeper of the Year 2015, 2016 and 2017

Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.

 



Master Book-keeper

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Hi Doug

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.



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John 

 

 

 Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.



Guru

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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



Master Book-keeper

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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  

Fallows Hall Ltd 

Winner - Bookkeeper of the Year 2015, 2016 and 2017

Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.

 



Guru

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Date:

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



Master Book-keeper

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Artois wrote:

I did start to question myself 


 Its a daily occurance in this job.   Guess the day to give up is when we stop questioning stuff!

Pat yourself on the back though for that one.



__________________

Joanne  

Fallows Hall Ltd 

Winner - Bookkeeper of the Year 2015, 2016 and 2017

Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.

 



Guru

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Posts: 838
Date:

 

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



Master Book-keeper

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Posts: 2975
Date:

Hi Guys 

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.

https://www.ukbusinessforums.co.uk/threads/starting-a-outsourcing-payroll-company-2019.397209/

Quite an eye opening thread as well, to say the least. 

 



__________________

John 

 

 

 Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.



Guru

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Date:

Leger wrote:

Hi Guys 

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.

https://www.ukbusinessforums.co.uk/threads/starting-a-outsourcing-payroll-company-2019.397209/

Quite an eye opening thread as well, to say the least.  


Hi John

Read the post earlier and was going to comment, great idea might try it myself biggrinbiggrin

Now I know who you are I will keep an eye out



__________________

Doug

These are only my opinions of how I see things and therefore should not be taken as advice

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