Home For accounting professionals General accounting discussion
Current updates regarding coronavirus (Covid-19) and the precautions AAT are taking will be continually updated on the below page.

Please check this link for the latest updates:
We hope you are all safe and well and if you need us we will be here. 💚

CIS Question

zara5034zara5034 Well-KnownRegistered Posts: 170
Forgive me if this sounds like a daft question, but I am quite new to CIS.

A client has given me his CIS information for the month of October and has added mileage (at 40p P/M) to the gross payment, he has then deducted 20% tax from this sum. My question is:

Is it correct/ok to add mileage to the gross sum and then deduct tax from it, as I am aware that mileageis tax fee up to 45p per mile up to 10,000 miles.

As he has already made the payment, can the sub contractor claim back the tax via the form on HMRC website, (I forget the name of it) or via a tax return?

Any advice would be appreciated as the CIS return is due in a few days.



  • MonsoonMonsoon Font Of All Knowledge FMAAT, AAT Licensed Accountant Posts: 4,071
    I'm no CIS expert, but I wouldn't have thought you'd deduct CIS tax on mileage payments.

    However, as long as the subbie has a deduction statement, he can claim it against his personal tax return.
  • T.C.T.C. Experienced Mentor Registered, Tutor Posts: 1,448
    20% is deducted from the labour element of a subbies invoice. However, it is up to the subbie to invoice in a way that this can be done. Monsoon is correct though when she says that the total amount of tax deducted can be claimed against the personal tax liability at the end of the year. Oh and don't forget, the subbie MUST receive a payments statement from the contractor to show the amount paid and deducted.

  • zara5034zara5034 Well-Known Registered Posts: 170
    Thanks for the replies, I know who to come to now if I have any more CIS questions:lol:
Sign In or Register to comment.