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ben2012

Ok you will have to bear with me here, I started up as a sole trader in oct 2013 prior to that PAYE for another company, now I've just taken on a job with a friend of mine and once we looked at the job we decided we needed more men to help out, we priced for it all and decided I would invoice the construction company we are working for and then in turn the guys helping us out would invoice me. After submitting the first invoice it became apparent about the CI scheme which I'd never had anything to do with before. It seems it's going to cause a real headache sorting payments out between everyone, is their a way around this where by the company can just pay me my invoice fully and then we sort out our own tax etc? Sorry for being so long winded! :)
 
This is a grey area to me. Id like to know too!!

My assuption was that you get all money and its taxed, then you tax again when paying subby and it gets sorted out in tax return.
 
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Hi I think the order it goes is you invoice company they take off 20% for cis. Your sub contractors invoice you take 20% if they have utr, 30% if they don't, off there invoices for cis. Then pay them. Don't think there is any harm in just paying them there invoice if you know all stub contractors.
 
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or do what most small traders do and ignore it.... or submit separate invoices to the client.

CIS is why so much cash swills around construction. Its all very well for a large project but for getting a mate or 2 to help for a couple of days - stupidity.
 
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Ok you will have to bear with me here, I started up as a sole trader in oct 2013 prior to that PAYE for another company, now I've just taken on a job with a friend of mine and once we looked at the job we decided we needed more men to help out, we priced for it all and decided I would invoice the construction company we are working for and then in turn the guys helping us out would invoice me. After submitting the first invoice it became apparent about the CI scheme which I'd never had anything to do with before. It seems it's going to cause a real headache sorting payments out between everyone, is their a way around this where by the company can just pay me my invoice fully and then we sort out our own tax etc? Sorry for being so long winded! :)
yup, you need to turn over 30,000 in labour and then you can apply for the equivelnt of a CIS 6 which is gross payments. This would mean all main contractors have to pay you without deductions, however you still need to stop 20% or 30% depending on the subcontractors tax reference or lack of it
 
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