Collecting Tax

[IvegotsTILE]

When working for a builder they pay 20% of your tax right,is there anything I need to have for the builder to pay this.I've only done domestic work so far so I'm not really sure how this works,I've just started a job for a builder and just want to know what I'm doing:huh2:

 

[DHTiling]

he would normally take your contractors number ( old cis num) or your ni number.. then he has to phone the inland revenue and tell them you are sub-contracting to him and then they tell him which way to pay you ..either 20% deduction if you are registered with tax office or 30% if you are not...hope this helps....any detailed bits just pm grumpy and he'll tell you ...

 

[Holohana]

shouldnt you also get some sort of advice note showing what the builder/contractor has paid on your behalf similar to the old cis vouchers? If they dont how do you know/prove they have paid it for you?

 

[DHTiling]

Once a month you get a statement of earnings from the contractor to the sub-contractor....

New Construction Industry Scheme (New CIS)
The Construction Industry Scheme sets out the rules for how payments to subcontractors for construction work must be handled by contractors in the construction industry and certain other businesses.
Under the Scheme, all payments made from contractors to subcontractors must take account of the subcontractor’s tax status as determined by HM Revenue & Customs. This may require the contractor to make a deduction, which they then pay to us, from that part of the payment that does not represent the cost of materials incurred by the subcontractor.
As of 6 April 2007 a New Construction Ind ustry Scheme started. Its aims are:

1. to reduce the regulatory burden of the Scheme on construction businesses
2. to improve the level of compliance by construction businesses with their tax obligations
3. to help construction businesses to get the employment status of their workers right.

What's new?

• We have published [DLMURL="http://www.hmrc.gov.uk/new-cis/scheduled-review.htm"]a Q & A about the Scheduled Review (Ongoing TTQT)[/DLMURL].
• 16 October 2007 - Construction Industry Scheme (CIS) returns due by 19th October
• 29 August 2007 - A guide to help contractors complete and submit their monthly return. This new guide is now available.
• We have published a Q and A about the monthly return reminder letter – IDMS16(F) – that we have recently sent to some contractors.
• We have published a Q & A on the subject of penalties for the late submission of the CIS300 contractor return.

The most recent items published are shown above, earlier items are held in Archive.
Commencement date

The commencement date for the new Construction Industry Scheme was 6 April 2007. The deduction rates for the new scheme are 20% for subcontractors registered with HMRC for payment under deduction and 30% for those not registered.

 

[Holohana]

well found and thanks. Ill be tapping my contractor up then as done 7 weeks, which finished 3 weeks ago and got no statement yet, despite asking them for it!

 

[grumpygrouter]

Once a month you get a statement of earnings from the contractor to the sub-contractor....

New Construction Industry Scheme (New CIS)
The Construction Industry Scheme sets out the rules for how payments to subcontractors for construction work must be handled by contractors in the construction industry and certain other businesses.
Under the Scheme, all payments made from contractors to subcontractors must take account of the subcontractor’s tax status as determined by HM Revenue & Customs. This may require the contractor to make a deduction, which they then pay to us, from that part of the payment that does not represent the cost of materials incurred by the subcontractor.
As of 6 April 2007 a New Construction Ind ustry Scheme started. Its aims are:

1. to reduce the regulatory burden of the Scheme on construction businesses
2. to improve the level of compliance by construction businesses with their tax obligations
3. to help construction businesses to get the employment status of their workers right.

What's new?

• We have published [DLMURL="http://www.hmrc.gov.uk/new-cis/scheduled-review.htm"]a Q & A about the Scheduled Review (Ongoing TTQT)[/DLMURL].
• 16 October 2007 - Construction Industry Scheme (CIS) returns due by 19th October
• 29 August 2007 - A guide to help contractors complete and submit their monthly return. This new guide is now available.
• We have published a Q and A about the monthly return reminder letter – IDMS16(F) – that we have recently sent to some contractors.
• We have published a Q & A on the subject of penalties for the late submission of the CIS300 contractor return.

The most recent items published are shown above, earlier items are held in Archive.
Commencement date

The commencement date for the new Construction Industry Scheme was 6 April 2007. The deduction rates for the new scheme are 20% for subcontractors registered with HMRC for payment under deduction and 30% for those not registered.

You reading my mind again DH?

Grumpy