CIS invoices Labour / Materials

PGM

I'm having to quickly learn about the CIS scheme;

When customers are paying us through it, and I've highlighted on the invoice the split between the Labour element and other.

Should they only deduct the 20% from the labour element?

I've got two of our customers paying us through the CIS scheme, one deducting 20% from labour and one 20% from everything.

thanks in advance.

Bluewednesday

20% should only be deducted on the labour element, I would go back to the ones who have deducted it on everything and get them to correct it.

PGM

Thankyou, that means we're short by huge amount of money!

JodieR

Yes, that's correct. It should just come off the labour element, but if your invoice doesn't break it down then they're correct to deduct it off the whole amount.

clegganator

Indeed it should only be labour. If you have been stopped on materials you'll get it back when the return is submitted. See it as a savings acount.

Without interest.... And where you'll be investigated when you come to withdraw...

PGM

clegganator wrote: »

Indeed it should only be labour. If you have been stopped on materials you'll get it back when the return is submitted. See it as a savings acount.

Without interest.... And where you'll be investigated when you come to withdraw...

Thanks all. Seems to be sorted out now, we're new to CIS, now we're fully registered the customer has agreed to pay over all except the 20% on labour.

Still applying for gross payment, but thats another story..