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- Fellow PM.Dip
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Can anyone help?
I have been approached by a potential client and am concerned about the following:
- Do I need any seperate qualifications in regard to CIS?
- Does it work similar to VAT returns?
The client is a large company. It has no payroll department as all their contractors are self-employed.
Any advice would be greatly appreciated.
David
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HI David
I'm not aware of there being any separate exams for CIS.
I can see why you're wondering if it's like VAT, I'd say it's more like payroll. I find it quite straightforward on a day-to-day basis but as with everything the CIS has it's own set of rules and so I'd suggest you have a good read into what it involves (have a look at the CIS section on the HMRC website). There are lots of penalties associated with getting it wrong so it's not something to jump in to before you understand it all!
Ruth
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RuthAns said:
“
HI David
I'm not aware of there being any separate exams for CIS.
I can see why you're wondering if it's like VAT, I'd say it's more like payroll. I find it quite straightforward on a day-to-day basis but as with everything the CIS has it's own set of rules and so I'd suggest you have a good read into what it involves (have a look at the CIS section on the HMRC website). There are lots of penalties associated with getting it wrong so it's not something to jump in to before you understand it all!
Ruth
”
Thanks Ruth, I will start reading.
The company in question wants a quote. They are asking for duties such as:
" VAT returns CIS returns Sales day book Purchase day book Credit management Reconcil bank and petty cash balances Draft annual account FA schedule General advice,etc"
Now I think my qualifications so far cover me up to the reconciliations, not covering draft annual accounts, FA schedule etc.
Am I correct?
David
Edited at 11 Mar 2011 03:04 PM GMT
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- Companion Fellow PM.Dip
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Hi David
You don,t need separate exams and no its not like the Vat Return are really payroll. There are quite a lot of rules to CIS and it is very heavily fined if you do not know the rules . This subject has been covered in detail with members views and due this discussion the ICB released CIS info on The February Newsletter.
I also gave a lot of detail and print offs from HM where to get info. I would advise you to read the newletter and the thread as it is not straight forward which is in techinical questions on this forum it was one of the first discussions
Its under Technical Queries and the Thread is called CIS Taxation
Edited at 11 Mar 2011 03:25 PM GMT
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- Fellow PM.Dip
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Hi Sarah
Thanks for your input. I have read the whole thread and am a little bit more knowledgable. I have also downloaded the 88 page pdf from HMRC regards the whole CIS scheme.
I just wanted to know a little more, as the prospective client has only asked for a quote and generalised as to the jobs they want done.
Basically, they are a limited company and only employ sub-contractors. Therefore all work is paid on invoice. This also means that I could only do certain jobs for them (correct?) - I am only level II manual and computerised.
What would be a fair quote in your opinion?
I will get back to them and request more detailed information as to what duties are required of me
David
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- Companion Fellow PM.Dip
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Hi David
CIS has an awful habit of never been as straight forward as it first appears . I recommend you find out exactly what they are wanting you to cover.
Here a suggestion of the information you should ask.
1) Will they supply you with CIS software to complete the Sub Contractors statements due the 5th of each month ( If not these can take time to produce on Manual System.)
2) Will you be running the control account for the PAYE to add to the CIS.
3) How many sub contractors have they got.
4) Are they all verified and proven not to be employees , another time consuming to verify the subcontractors if you do not have CIS Software.
I presume an accountant, owner , Director will be submitting the returns . David I am not if you are allowed to the CIS return on your membership, but that would not stop you doing the ground work. I suggest you check with the ICB how much you are allowed do with regards to the return.
Just make sure you are covered and your happy as there can be a lot of fines and that tends to be were companies and bookkeepers , accountants disagree with owners who responsible for the fines.
I think you need this info to decide what to charge.
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Thanks for the tip Sarah.
Have taken all on board and am now waiting a reponse from ICB.
Will make a decision soon and get back to the client.
Will also keep you informed.
David
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- Fellow PM.Dip
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Hi there,
To follow on from this CIS enquiry, I have had a reply from the potential client and would like some further advice. I have not heard back from ICB regards how much my current qualifications and membership cover.
Is there anyone about I can contact?
David
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- Member PM.Dip
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I have just got a Client who is a Director of a company and also does some sub-contract work and gets 20% deducted from is Labour charge through the CIS scheme.
How do you account for this deduction, which nominal codes do i use?
Is it Cr Sales minus the 20% deduction. Dr ( 6000)CIS the 20%?
Also how do I account for the VAT part
How does he claim this deduction back?
Can any one help please?
Regards
John
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Hi John
CIS is tax suffered at source. Therefore you would credit the Gross income to his sales and the 20% would go on the balance sheet to be claimed back against any PAYE payments he has made. If is not making any PAYE payments then he would offset any CIS suffered against tax owed.
i.e. the CIS that has been deducted from his income goes on the debit side of the balance sheet in the taxtion section.
I hope this is of some help.
Kind regards
Stuart
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- Fellow PM.Dip
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Just to let anyone reading this, I have had a reply from 'Member Services' and have been told that at my level of membership (level II) I am covered to do CIS returns.
Yay.
Now all I need to do is get some clients. It seems really difficult around the Southend area, but I shall battle on. I need to, to get out of the job I am currently doing.
If anyone has any advice as to how to get any clients then please feel free to offer up suggestions.
- David
Edited at 21 Mar 2011 01:18 PM GMT
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