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• # 112183
• Thu 21 Jan 2016 08:55 PM

Hi

I am currently in the process of completing my first self assement for my first client, of which i have had to set up his calcuations from scratch.

He is a self employed plasterer and one of his contractors he does work for the company deducts 20% tax of his gross income. Can someone just confirm to me do i just disclose the tax that he has paid or do i have to include what he has earned along with the tax that he has paid to the contactor and where abouts on the self assement this needs to go?

Many thanks in advance for your help

Louise

AICB

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• # 112184
• Thu 21 Jan 2016 09:24 PM

CIS

Hi Louise

There is a section on there that will ask how much tax has he paid as a sub contractor, that is all you have to do.

When you get to the summary you will see how much tax if any is needed by the HMRC.

He will of course be paying ni unless he is exempt, usually by not earning enough.

Come back to me if you you any problems

Were are you based?

Alf Lyons

Lyons Bookkeeping Services

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• # 112185
• Thu 21 Jan 2016 09:33 PM

HI Alf

Thank you for your help i will try this tomorrow when i get my completed figures.

I am based in Colchester. I am new at this and so would appreciate any extra help and advice on networking to get new clients and advertise.

I am qualified by AAT level 2 and 3, and just near completion of Level 4 Advanced Bookkeeping. I am an associate member and have my practice licence.

Kind Regards

Louise

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• # 112189
• Fri 22 Jan 2016 11:38 AM

Hi Louise,

Gross amount invoiced by subcontractor to main contractor is included in your clients turnover for the tax year.

To be able to claim the CIS tax deducted he will need to give you proof of this:

i.e. Statement of Payment & Deductions he receives from main contractor.

No statements - no claim!

Once you have the statements you may offset the total amount deducted on the relevant part of the tax return - it will be headed as follows:

Deductions on payment and deduction statements from contractors - construction industry subcontractors only.

The amount will be shown on the 'View your calculation' of tax return under the heading minus tax deducted CIS25 vouchers and profits.

Marilyn

edit - spelling mistake!

• A clever person solves a problem.

  A wise person avoids it.

  Albert Enstein

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• # 112190
• Fri 22 Jan 2016 12:08 PM

Hi Maryilyn

Thank you very much for your advice and help on this, very much apreciated.

Kind Regards

Louise

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