Hi, I’ve had a query from a subcontractor on the CIS scheme and his self assessment tax return.

KerryA8

Throughout the year he has had a material element on his invoices which he has not paid CIS tax on. Does he need to deduct these amounts from any other materials/ expenses he has incurred when conpleting his tax return or can they still be included as an expense still?

douglasstroud

For his SATR the gross amount he has received before CIS tax and materials have been deducted will be his turnover, he then deducts his Cost of Sales (including the materials on the Invoices) and any other allowable expenses which will leave him with the profit/loss for the year