Effective Cis Invoice Example for Businesses that Streamline Operations

Cis invoice example for businesses

are you considering taking on subcontractors to build your construction business this video is for you if you haven't yet click the bell and subscribe to be notified every time we produce our best pieces of content are you at the stage with your construction business we are now ready to scale you've got enough work for you and other people this could allow you by taking on subcontractors by making more money now that's really exciting but taking on board some contractors can be really daunting especially if it's for the first time so in our video we'll run through what exactly what you need to do by when to make sure you stay legal and compliant and don't come into any problems later on down the line Point number one you need to register so when you're looking to considering taking on subcontractors you need to make sure you are registered as a contractor this is quite an easy process and it's easily done either by yourself your internal finance department or your external accountant so even before you're considering taking on subcontractors May make sure you are registered in the first place and before you start actually paying your subcontractor make sure you verify them so the tax rates normally for subcontractors when you're taking them on are either 20 or 30 percent Point number two you also need to make sure that you're deducting the right amount of tax from them so what you'll do is and this is way before the pay date initially when you take them on verify them to check they are registered as a subcontractor with hmrc the difference is 10 so if you can't if they can't find them on the system while they're giving you the wrong tax number you are meant to deduct 30 from them if not and they are registered and they are online then you can deduct 20 so make sure you don't fulfill of deducting them 20 on your pad get into the The Return part where you should have deducted them 30 verify them straight away massively important and it will save you problems in the long run now when you're paying subcontractors you will do monthly returns now the consequence of this if you're not doing the monthly Returns on time there's a short window of a few weeks you will get a penalty so if you forget one to a Year's worth of penalties that can equate to a 1200 pound penalty who has got money to throw away like that it's a complete waste so when you're paying your subcontractors you have to issue them vouchers showing how much you've deducted from them which will be on abnormally 20 of their labor provided they are verified and you will need to deduct that money from their payment and pay that over to hmrc or if you're getting CIS deducted from your income you can offset this but that's a different video now just to be 100 clear you will be deducting 20 of their labor if they're registered now be careful that you are not making this up it's very easy for subcontractor invoices to say that they're all materials yeah well sometimes they will be they'll provide their own materials but a lot of the time it's labor so make sure it's completely Justified what you're deducting and you're not being crafty to come a Cropper later down the road now what I find beneficial about subcontractors is it allows you to scale your business quick you can normally get subcontractors a lot easier you can be clear and they'll know exactly what they're doing and also that will allow you to then build part of a team where you can then call in different Services when you need to when you're running your own construction company you will get customers that will then totally believe and trust in everything that you'll do so you will get they will then ask you for additional services that are outside your skill set but if you've got other people in the trade that have got other skills you can then call them in to use them for jobs to make your clients happier now as a construction business there's nothing better than happy customers because they will talk to everyone else about your services and become your indirect Salesforce this is awesome so with subcontractors have you got any currently that are on your books at the minute or are you looking to use more are you keeping the records in day are you meeting all your criteria and paying over the tax if it's necessary to hmrc if it's not and you're not sure about a certain era feel free to jump on a discovery call with me click my candidly link below I promise I'll aim to give you as much value on the meeting as possible and there'll be no pushy sales pitch foreign