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DEDUCTING VAT FROM SUB-CONTRACTORS WHO ARE NOT VAT REGISTERED

GingeraccountsGingeraccounts Registered Posts: 9
in VAT
I have a client who is a sub-contractor registered with CIS and is an installer for Wickes..
The company (contractor) are deducting both VAT and CIS both at 20% from my client's invoice, but my client is not registered for VAT.
When he queried this with the company concerned they said that "everybody on Wickes installer payroll gets charged the VAT as well as tax, if you have a good accountant they will win it back for you"
Has anyone ever heard of this before & if so, how does one 'win it back' when the client is not VAT registered?
Thanks

Comments

  • douglasstrouddouglasstroud Registered Posts: 182
    I think you need to get the subbie to speak to the contractor again or maybe contact them yourself
    If your client is Invoicing then all that should be deducted is the CIS Tax element, if he was VAT registered it would be the subbie charging the VAT and the contractor paying it so can not see how your client is having VAT deducted whether he is registered or not.
  • BertDoesBookkeepingBertDoesBookkeeping SheffieldRegistered Posts: 10
    'Win it back'.. but if not, then we've taken it from you and you can lump it. Good of them, isn't it?

    Agree that VAT shouldn't be the Contractor's to be deducting. It doesn't sound right at all - how can they submit it to HMRC on the subbie's behalf if he has no VAT Reg number?

    I'd make a call to the Contractor. You'll be more likely to know what you're probing for than the client.
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