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TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 16222
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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I am completing my tax return. 2 questions: I am not registered

Customer Question

I am completing my tax return. 2 questions:

I am not registered for vat do I there in all my calculations just use the vat inclusive figures eg for cost if parts, petrol etc and also what I get paid?

I sometime sub contract and work in construction. Some will deduct 20% at source and others don't leaving it down to me. How do I reflect the payments I have made under construction to show what I have already paid and also what I have earns in construction but not sound the 20% please?

Submitted: 5 years ago.
Category: Tax
Expert:  TonyTax replied 5 years ago.

If you are not registered for VAT, you should not add VAT to the amount you are paid and disclose in your tax return and you should certainly not be charging VAT. As far as expenses are concerned, you should claim the VAT inclusive expense. Take a look here for information on VAT registration.

If you are completing the short self-employment pages, put the CIS tax in box 37. If you are completing the full self-employment pages, put the CIS tax in box 80. The gross earnings should be shown in the box 8 or box 14 depending on whether you are completing the short or full self-employment pages.

I hope this helps but let me know if you have any further questions.
Customer: replied 5 years ago.
Thank you fir the reply. Forgive I do need a little further clarity and am happy to add more to the amount I pay at the end to reflect this.

So I never charge vat - my question was in adding up cost of sales am I correct to use the vat inclusive amount for things like parts, petrol etc? I think I understand from your answer that I do but just wish to clarify.

Thanks for the details on where to log the tax for CIS I have already paid. Fir the CIS work I've done where no tax has yet been paid how do I declare and register that please?

Thanks and look forward to hearing from you.
Expert:  TonyTax replied 5 years ago.

No problem.


You do include VAT in your cost of sales figure and for any other expenses business expenses you pay VAT on.

You add the non CIS income to the CIS income if it is the same business. For instance, I have clients who do CIS work as electricians and have 20% tax deducted. They also do work in people's homes and obviously no tax is deducted from their earnings for those jobs. However, all the earnings are combined and disclosed in the same set of self-employment pages.

Customer: replied 5 years ago.
Thank you that's really helpful. I sub contract for a few people who dork in construction. 1 has deducted the 29% the others have do I declare the ones that haven't deducted the 29% already as I guess this is still due by me?

Expert:  TonyTax replied 5 years ago.

Was all your work income from doing the same type of work? If it was you add it all up and show it in the turnover box of the self-employment pages I gave you a link to earlier on. The fact that some had tax deducted and some didn't doesn't matter.

Customer: replied 5 years ago.
Thank you. I do some sub contract work for construction and some not. Where the 20% has already been deducted do I use the figure for my income before or after their deduction is made? I heard that I should of 'paid' the 20% for construction income. Is this true? I haven't, so how should I declare that? Thanks.
Expert:  TonyTax replied 5 years ago.

Where you have had tax deducted you use the pre-tax figure. You add that to the income where no tax has been deducted and that is your income before expenses. The 20% tax that you have suffered on some of the income will be shown as a deduction from your tax liability at the bottom of the tax calculation which you can see if you click on "View my calculation".

I'm not sure what you mean by "should of paid 20%.". If you work on a construction site for a main contractor they will deduct 20% tax if you are registered within the CIS system run by the tax office. If you work at a private individual's house building a wall, they won't deduct tax because they are not part of the CIS system. All you need to do is declare all your income and not worry about what other people should have done as far as deducting tax is concerned.

I'm assuming you are registered within the CIS system as you have paid 20% tax on some of your income. If you were not registered, you would be having 30% tax taken off. Read about the CIS scheme here.

Customer: replied 5 years ago.
Thank you Toby you've already been so helpful. One final question. I am not registered with the. Construction industry. I sub contract for people with contracts in construction. What is my position as a result please? I invoice for my parts and labour to other companies. Some have taken 20% off others have not so I'm a little confused....thanks.
Customer: replied 5 years ago.
Typo! Meant to type Tony, predictive text is sometimes unhelpful!!
Expert:  TonyTax replied 5 years ago.
You need to register with the CIS. You will still be able to claim for the tax deducted.
Customer: replied 5 years ago.
I am registered with CIS. To conclude: how do I log / what do I do about the deductions that have not yet been made under construction please?
Customer: replied 5 years ago.
Forgive my go traditions replies about being registered. I checked and I am registers. Apologies for the confusion.
Expert:  TonyTax replied 5 years ago.
I thought you probably were as you are on 20% tax deduction for CIS work and not 30%.
Customer: replied 5 years ago.
Thanks. What do I do about the non CIS deductions at source of payment please?
Expert:  TonyTax replied 5 years ago.

Nothing. You simply declare all your income and pay any tax due. As I said before, work you do on somebody's house for example will not be covered by the CIS scheme.