VAT

B

Brendan

Well-known member
doubtful will be pushed back again, anyone vat registered and subcontracting will be 20% worse off and if your on flat rate scheme will need to assess your position as you will be far worse off if your not the main contractor.
For example on flat rate scheme if you did a job for 10k plus vat you wouldn't receive the vat portion but when you do your return you would still pay your flat rate amount on the gross total, so down the 2k in vat plus another £1140 to pay to the vatan
 
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Gunners

Gunners

Well-known member
Got the letter too. Looks like March 1st it is. Trying to get out of CIS work entirely if I can. Its becoming very hard work.
 
JD450A

JD450A

Feral as Fk
It actually makes f**k all difference from what I can tell to anyone bar those whom are "freelancing" and seems to of been simplified from the absolute clusterfuck that was touted last year.

Will only make a difference to one contract we do.
 
D

DaveDCB

Well-known member
It’s gotta be something they are implementing to try and close a loophole that a certain group are exploiting? To most companies it’s no hassle , but it just adds a extra complication as you can no longer just fire a invoice at someone without first checking the payment structure?ie who’s paying them, I assume you can’t just presume that they are the end customer? Correct me if I’m wrong on that?
 
JD450A

JD450A

Feral as Fk
It’s gotta be something they are implementing to try and close a loophole that a certain group are exploiting? To most companies it’s no hassle , but it just adds a extra complication as you can no longer just fire a invoice at someone without first checking the payment structure?ie who’s paying them, I assume you can’t just presume that they are the end customer? Correct me if I’m wrong on that?
Looking at the flow chart if it's out of the Scope of CIS then it's out of Scope. Works for a private customer on there new build house fall out of scope/end user anyway.

Issue would arise if you where working for Main contractor on a newbuild house.
 
J

Jimoz

Well-known member
Did some subbing for my mate other year he put my UTR in wrong. Got stopped tax then had to pay that tax aswell after submitted return. So double bubble then waited months for refund.
Next time I worked for him I just invoiced him as if I was supplying a product not a service and no CIS.
this becomes red tape nightmare
 
JD450A

JD450A

Feral as Fk
Did some subbing for my mate other year he put my UTR in wrong. Got stopped tax then had to pay that tax aswell after submitted return. So double bubble then waited months for refund.
Next time I worked for him I just invoiced him as if I was supplying a product not a service and no CIS.
this becomes red tape nightmare
Go gross CIS 👍
 
Nick...

Nick...

Active member
As I understand it if you work for a builder which I do 99% of the time,I don’t charge him vat on my invoices
nick...
 
J

Jimoz

Well-known member
Would the only reason they've bought this in because of fly by nighters setting up charging vat then disappearing
 
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