CIS and UTR

Jan

Maybe I'm being a bit thick, but I thought every business/company has a UTR whether they are registered for CIS or not :blushing:

Reason I ask is that we had a problem getting paid by a supplier yesterday who wanted our UTR. The director who is supposed to deal with all this said we haven't got one 'cos the accountants said we don't have to register. (So he's not going to take much notice of what I think) The supplier checked with HMRC who said yes we did need to register - this resulted in phone calls back and forth - the supplier even offered to talk us through what was required !

So basically - will the company have an UTR or not? I just want to get it straight in my mind!

Oops - sorry that should read customer not supplier. Now I really am loosing it :laugh:

Dean

Jan wrote: »

will the company have an UTR or not?

It will. Call your accountants. :001_smile:

Regards

Dean

Jan

Thanks Dean

I simplified the situation, so lets just say I have left it in the hands of the director in question! He's the type that knows it all so won't take if from me. I was going to suggest emailing them yesterday - think it has been left that they are going to register. Just waiting for the supplier to take off 20/30% now!!!

Dean

The UTR for tax purposes is not necessarily your CIS verification number (I don't think).

Regards

Dean

LMW

The reason why you are asked to give your UTR number before you get paid:
- the work invoiced falls under the CIS cheme and your customer needs to get verification from HMRC to find yout how much tax needs to be deducted from the payment (note: the labour element in the invoice, not materials).

To be able to get the verification from HMRC following information is needed:
Limited companies: companys UTR number, company registration number and company name
Sole traders: UTR number and sole traders NI number and name.
Parnership:Partnership UTR number, NI number for a registered partner and UTR number for the partner in question and the partners name.

HMRC is unable to verify anyone without this information and if the company paying you is unable to verify you they have to deduct 30% tax from the labour element of the invoice.
Ofcourse your company must be registered under CIS cheme to be paid either gross or 20% deduction, depending on their CIS status. Otherwise the deduction is 30%

HMRC website has got very good information about what falls under CIS cheme so you can find out very quickly if your compony need to be CIS registered or if your customer has misunderstood something.

Regards

Lisa

Jan

Thanks Lisa - I know that really. The company I work for is registered for CIS as a subbie and a contractor. Trouble is I'm dealing with a director for whom I don't exactly work who has been told by his accountants that they don't need to register and is a right pain in the nether regions anyway. To me it's quite simple - give the customer the UTR and either get paid 70% or 80% (if he'll register) which in my book is a lot more than 0% and loose the job :thumbdown:. (Goods/ services haven't been supplied yet). But nobody seem to be listening to me :mad2:

I was just doubting myself when he kept saying the company doesn't have a UTR.

I left them to it in the end. I just got on with my own work, listening to the mayhem he was causing!