CIS Tax

lolism · 20 Sep 2007 at 22:19

Hi guys.

I currently work for a Payroll Bureau calculating tax, NIC's, P11D's etc- But I've had a few clients contact me asking to do their CIS returns for them and have a couple of questions.

First off I think my client is currently deducting the wrong amount of tax. It's my understanding that its 20% for verified and 40% for unverified, correct? However I calculated that my client has been deducting 25% - whats this in relation to?

Also has the payment to be made to the same account as the PAYE? We currently don't have the CIS equivalent to a 'yellow book' and wondering if a letter would suffice stating the Accounts office reference and their UTR?

Any Payroll Admins/Accountants around?

Thanks for any help.

Guv · 20 Sep 2007 at 22:30

I think you'd be best calling HMRC for an answer, they have a CIS helpline IIRC.

I don't come across CIS often and can't remember the new rules, although have a booklet on it somewhere at work and had a boring 2 hour talk on the new scheme a while ago!

lolism · 20 Sep 2007 at 23:16

Guv said:
I think you'd be best calling HMRC for an answer, they have a CIS helpline IIRC.

I don't come across CIS often and can't remember the new rules, although have a booklet on it somewhere at work and had a boring 2 hour talk on the new scheme a while ago!

Might be the best bet, though I try avoid phoning HMRC as much as often, I hate their hold music!

I've got a big booklet on it, but its too lengthy and indepth. I've seen quite a few tax questions on here and some decent answers so thought someone might be clued in on CIS

Diddums · 24 Nov 2020 at 23:58

Bradjerry6 said:
I'd suggest you call HMRC too cos the CIS booklet is very boring and can be confusing sometimes.

Hold on, I'll text him. He's probably still on hold.

Tony Edwards · 25 Nov 2020 at 00:01

Hello!

Freakbro · 25 Nov 2020 at 10:22

lolism said:
First off I think my client is currently deducting the wrong amount of tax. It's my understanding that its 20% for verified and 40% for unverified, correct? However I calculated that my client has been deducting 25% - whats this in relation to?

It's 30% for unregistered not 40%.

I don't know why they would be doing 25%, unless are you just looking at the total invoice figure? as VAT, materials, expenses need removing first then the 20/30% deduction is just on the balance. Ie: their labour part of the invoice.