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CIS Contractors

andrewtdkandrewtdk Well-KnownRegistered Posts: 150
Hi all

I have just been asked this question by a sub contractor friend of mine and I didn't actually know the answer so I thought I would ask here.

He is currently a sub contractor and has cis tax stopped from his sales however he is now going to be a contractor and have people working for him and he will therefore have to deduct cis tax from their invoices. I know as a company you can fill in a form and not pay over the tax you stopped from your subcontractors to the extent that you have had cis tax stopped from your sales however I cant find anything that applies to sole traders. Obviously paying cis tax on your sales and then again on your contractors would have a big impact on cash flow so im hoping I have missed something.

Hopefully someone can help on this one and please let me know if you need anything clarifying

Regards

Andrew

Comments

  • stevo5678stevo5678 Well-Known Cheltenham Registered Posts: 325
    Hi Andrew As a company it can be offset but not as a sole trader. He will need to pay the tax over each month. If it's an issue with cash flow you can apply for gross status so your client doesn't get cis stopped from his customers Steve
  • andrewtdkandrewtdk Well-Known Registered Posts: 150
    Thanks for the reply. I had forgot about the gross payment scheme so will suggest to my friend that it is something he should look into. Cheers
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