Paying other sparks

[kingeri]

It sounds so complicated it's no wonder some people don't bother at all!

 

[KAS1]

Just bung them a bit of cash in hand lol

 

[Jimsparky]

Jim,
That is not exactly what HMRC say.

We get away with it some times by stating the work is within the food industry not the construction industry. Had subbies now within this field for 6 years and we still get it wrong as and when Hmrc change there mind.

 

[Dave 85]

Pay em cash. Easies.
It p***es me off a little that the construction industry has been singled out by HRMC as the one industry in which subcontractors cannot be trusted to look after their own tax. I understand they've probably done it for a reason and its obviously been a problem in the past but I'd be happier if they just said to me..."look after your own tax....if you don't pay it, we'll send you to prison" Simples.
I barely do any CIS work any more but in the past I've worked for some fairly unscroupulous scumbags who have deducted the 20% but not actually paid it. Luckily I declared it as having been paid and never heard anymore about it but had HMRC decided to pull me on it then it would have been me that was liable which is a little ridiculous.

 

[Octopus]

CIS Query | AccountingWEB

Interesting thread on this

Which just goes to demonstrate why so many people use cash or simply ignore CIS.

If you are doing a job and need a plumber for 1/2 day to go through the hassle of CIS registration and the MONTHLY reports there after is simply stupid.

But if you are a contractor on a site for a week or more for a construction company then applying the rules of CIS start to make sense.

 

[i=p/u]

Some job vacancies state you are responsible for paying own tax and ni... Which seems simple and should only pay into an acc. Which would same easiest way for you to pay your own tax... And would be all on your bank statement ..

I've known guys not to pay your tax too..

 

[tom1]

Pay em cash. Easies.
It p***es me off a little that the construction industry has been singled out by HRMC as the one industry in which subcontractors cannot be trusted to look after their own tax. I understand they've probably done it for a reason and its obviously been a problem in the past but I'd be happier if they just said to me..."look after your own tax....if you don't pay it, we'll send you to prison" Simples.
I barely do any CIS work any more but in the past I've worked for some fairly unscroupulous scumbags who have deducted the 20% but not actually paid it. Luckily I declared it as having been paid and never heard anymore about it but had HMRC decided to pull me on it then it would have been me that was liable which is a little ridiculous.

Well said! We had a builder who manage to pay our cis into the wrong utr number. Now it's up to us to try and get it back despite the company name ,utr number and the exact amount to be deducted on the invoice!

 

[londonlec]

pay cash

 

[Cbigfoot]

be careful, if you pay a sub contractor who is within the scope of CIS, you should pay him under the CIS scheme for which you must register and do monthly returns even if you do not use any subcontractors.
You have to provide a statement every month to each contractor to tell them what tax you have deducted from them.

If you have a tax inspection they could find it and they will fine you for each time you did not register a payment and can ask you to pay the tax you should have held back.
\if you do not get inspected or they do not find it then lucky you!

I do use it but i also keep my accounts up to date and its all done electronically by the software, but its not particularly cheap to buy!

If you work for someone who says they have deducted your tax they should provide a statement. If they do not and refuse to give it to you then tell them you will call the IR to complain about it. It is likely they are not CIS registered and pocketing the tax they are deducting from you. Leaving you liable for the tax at the end of the year. If you have the statements then they can chase the contractor for the tax they deducted on your behalf.

 

[flyingsausage]

Some job vacancies state you are responsible for paying own tax and ni... Which seems simple and should only pay into an acc. Which would same easiest way for you to pay your own tax... And would be all on your bank statement ..

I've known guys not to pay your tax too..

You are meaning the Jobcentre adds for self employed sparks to work for agencies and are responsible for their own tax and NI.
What they don't mention on the advert is you have to work through a third party (umbrella company) and have to pay about £30 a week for the privilege and the umbrella company will deduct your tax and NI from your wages and also muck up your wages every week.
Also is you have a dispute with the agency they will say it is not their problem as you work for the umbrella company.

 

[oldtimer]

Cash is a rare animal today in this electronic world 98% of my business is internet driven and about 90% pay via internet banking and the other 8% pay via cheque which means I get to stand in the bank and of course HMRC work on the principle that all tradesmen get paid in cash But the majority of my customers want invoices for example did a small job this morning the bill was £58 parking materials was £5 and I got a cheque with an insistance that I send a invoice detailing what I did