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Sam
Sam, Accountant
Category: Tax
Satisfied Customers: 13862
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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If i had invoices that equated to £39321.48 before vat @20%

Customer Question

if i had invoices that equated to £39321.48 before vat @20% but was then stopped tax @20% how much would I be getting .
Submitted: 1 year ago.
Category: Tax
Expert:  Sam replied 1 year ago.
Hi
Thanks for your question
There cannot be a VAT charge and a tax charge - ????
You are either self employed (in the true sense of being paid gross and are VAT registered so charge VAT) and charge VAT or are CIS (or employed) and suffer tax - but do not charge VAT so please expand
Thanks
Sam
Customer: replied 1 year ago.

we are a vat registered company , and we are stopped tax at source cis , as we do not have a exception cert as yet .

Expert:  Sam replied 1 year ago.
Hi Tina
Thanks for your the additional information and understand the position now
If you had an invoice £39321.48 before VAT and then added the 20% VAT charge on - this would make the amount due (at this initial stage) of £47185.78 (with £7864.30 VAT
Then the Contractor would charge 20% tax - so this would take off £7864.30 and you the subcontractor would receive £39321.48
Youy would then still have to account for the VAT in your return (as having charged it) and would then be out of pocket by £7864.30 to represent the tax position (but would be provided with a payment and deduction statement detailing the tax suffered on your payment)
Let me know if I can be of any further assistance
Thanks
Sam
Expert:  Sam replied 1 year ago.
Hi
I did forget to point out that if any of that original cost related to materials then as CIS is only charged on the labour element then tax charged and VAT may not actually remain the same - apologies I should have asked how that figure was made up
Thanks
Sam

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