JoelP
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| posted on 9/9/08 at 03:02 PM |
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CIS opt out
have any CIS subbies on here opted for gross payment? Took a lot of research to even find there was an option of it, but the idiots i contract with
wont let me make a material deduction, and even CIS340 doesnt mention labour costs, so i think my best approach is to get gross payment and sort it
myself.
Im running at 35% profit on turnover but they are taking 20% of my turnover for tax as if it was all profit! That effectively means im paying tax at
58% 
Oh and if you have done this, did they wrangle much when you opted out?
Cheers!
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bigpig
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| posted on 9/9/08 at 05:19 PM |
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You have a U2U, with some basic info on persuading the contractor.
But this http://www.hmrc.gov.uk/cis/advice-sub-pay.htm
gives you a guide to the 3 tests required.
Still that 20% of materials will be a nice cash lump sum post April when they have to pay you it back.
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JoelP
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| posted on 9/9/08 at 08:30 PM |
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quote:
Originally posted by bigpig
Still that 20% of materials will be a nice cash lump sum post April when they have to pay you it back.
20% of materials and wages will be a lovely lump sum, wont be much good if im bankrupt by then!  Cheers for the u2u, much appreciated. 
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