UTR code necessary?

[thekingiam]

done 1 job for a maintanance company a while back. (replaced two pir sensors at dw sports).
they have emailed me asking for bank details ni number and my utr number.
with a link at the bottom on how to join the CIS tax system,
As i have just registered as a sole trader online i haven't received anything off tax yet and furthermore will put in my own tax forms and payments when required.
as far as i can see this maintanance company will deduct my tax for me for 1 job only when i give them a utr number as they are classing me as a subcontractor am i correct?

further more i didn't think as i don't work on new builds and only a few comercial jobs usualy as my own boss that i didn't need to register on CIS is that correct?

help needed please!

 

[RyanCheetham]

If another construction company is overseeing the work and they call you in to complete the work, or parts of, you are sub contracting to them and as such all payments for LABOUR ONLY are subject to CIS as far as i am aware. I dont see the problem in giving them your UTR as it saves you headache long term with taxes. Just make sure they give you a CIS receipt everytime they pay you

 

[thekingiam]

thanks ryan, as i haven't got a code then i guess they will deduct 30%! as i didn't invoice them seperately for parts and labour seperately it will be interesting how they work it out.

 

[RyanCheetham]

CIS deductions are 20%. How long ago did you register with HMRC? As i received my UTR within a couple days from completing the online registration. The company will deduct 20% of your total invoice if you have not put in a labour specific figure. However you will get the money lost 'back' when you complete your end of year tax returns as this will seperate all materials/ tax allowable expenses and your actual income. Just keep records and receipts for everything and you will be ok

 

[thekingiam]

yesterday.

 

[telectrix]

ask the company you subbed for to hang fire and you will send a new invoice splitting materials and labour, along with your UTR when you receive it.

 

[netblindpaul]

Why get involved with CIS for maintenance work, it is not required according to HMRC.

 

[Octopus]

Why get involved with CIS for maintenance work, it is not required according to HMRC.

And this is how you should respond to the maintenance company.......

If you haven't you need to be paying your class 2 NI's too.

 

[RyanCheetham]

Why get involved with CIS for maintenance work, it is not required according to HMRC.

a very good point that i overlooked

 

[telectrix]

i missed it also.