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TonyTax
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15946
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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if I remove cis and then pay vat on a labour only construction

Resolved Question:

if I remove cis and then pay vat on a labour only construction invoice, do I still need to pay the cis at the end of each month
Submitted: 3 years ago.
Category: Tax
Expert:  TonyTax replied 3 years ago.
Hi.

Can you tell me what you mean by "remove cis" please.
Customer: replied 3 years ago.

sorry, deduct from their invoice to pay to HMRC

Expert:  TonyTax replied 3 years ago.
Thanks.

Leave this with me while I draft my answer.
Expert:  TonyTax replied 3 years ago.
Hi again.

Take a look here and here for information on CIS deductions. You need to make a monthly return to HMRC of the CIS deductions and pay over those deduction monthly or quarterly where the total is a small sum. I advise contractors I act for to pay whatever is deducted each month no matter how small a payment it may be.

I hope this helps but let me know if you have any further questions.
Customer: replied 3 years ago.

thanks, ***** ***** that , but I have been told you don't need to pay the cis if you have paid the tax as it all goes into the same pot as the end of the day.

is that true?

Expert:  TonyTax replied 3 years ago.
Are you referring to the VAT when you say "if you have paid the tax"?
Customer: replied 3 years ago.

yes referring to this

Expert:  TonyTax replied 3 years ago.
The answer is no. You still have to pay the CIS deductions to HMRC. The VAT has to be reported by your sub-contractor in his VAT return and paid over by him to HMRC if the total VAT he charges his customers (you) for a quarter is more than the VAT he pays on his supplies for a quarter. It has absolutely nothing to do with your CIS deduction obligations.
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