M
martinxxxxxx
I have completed a job for a builder put my limited co invoice as normal and I got this response
We have contacted Inland Revenue to process your payment and they say that we have to give them your company's UTR number due to you working as a subcontractor. Even though you are a limited company, you still fall within the CIS scheme.
You will also have to break your bill down listing material cost (non taxable) and labour cost (taxable at given percentage from Inland Revenue).
If you are not registered with the Inland Revenue/CIS Scheme you will be stopped 30% tax rather than 20% or zero. It would be a good idea if you contact them to make sure that you are registered before we verify your payment.
My accountant says they should just pay the bill - any thoughts
We have contacted Inland Revenue to process your payment and they say that we have to give them your company's UTR number due to you working as a subcontractor. Even though you are a limited company, you still fall within the CIS scheme.
You will also have to break your bill down listing material cost (non taxable) and labour cost (taxable at given percentage from Inland Revenue).
If you are not registered with the Inland Revenue/CIS Scheme you will be stopped 30% tax rather than 20% or zero. It would be a good idea if you contact them to make sure that you are registered before we verify your payment.
My accountant says they should just pay the bill - any thoughts