Self employed
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Danutb
Posts: 4 Newbie
in Cutting tax
I am self employed and have been working for a company with a few other guys, the company was paying mine and the other guys wages into my bank and through my UTR number so the correct amount of tax was always paid and I then paid the other lads there wages through my bank minus the tax that had already been deducted. The guys are all self employed themselves. How do I go about claiming the correct amount of tax back on just the money I earned without claiming tax on the full amount that went through my UTR and how do the other guys claim the tax back that they paid even though it didn't go through there UTR number???
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do you work in the building trade and get paid under the Construction Industry Scheme (CIS)?
if you do not know how to deal with tax for sub contractors working for you then you need to see an accountant and get it sorted asap.0 -
You appear to be acting as a Gang Leader.
As such you have to comply with the regulations for a gang leader
https://www.gov.uk/what-you-must-do-as-a-cis-contractor/who-is-covered-by-cis0 -
Yes I work in the construction trade and I was getting paid through the CIS but I was receiving the other guys wages and I was then paying them, but as it all went through my UTR number I'm not sure how the other lads can claim there tax back that was paid and also stop myself been put into a higher tax bracket.. the other guys are all self employed and all the correct amount of tax was paid but with it all going through my UTR number I don't know where this leaves myself as well as the other guys.0
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You are a gang leader and as a result you are acting as the contractor and need to deduct tax from the payments you make to the others.
You need to read the link quoted above as there is more to it than just handing them the money.0 -
The tax was already deducted before the payment was made to my account i then paid the lads the wages that they were entitled to. I was not making any money from the lads I was just simply receiving there wages into my account as the company we were sub contracting for said this was the easiest process but they did not explain anything else to me0
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sorry but the reality is in the eyes of HMRC you were a contractor "employing" a gang of sub contractors.The tax was already deducted before the payment was made to my account i then paid the lads the wages that they were entitled to. I was not making any money from the lads I was just simply receiving there wages into my account as the company we were sub contracting for said this was the easiest process but they did not explain anything else to me
the money paid to you had tax deducted by the contractor employing you. You did not receive "your" wages and the wages of "the guys". You received a total payment, less tax as a sub contractor of the person paying you.
In turn you yourself are then acting as a contractor when you then paid over to the sub contractors working "for" your gang. consequently you should have deducted tax from that and reported it to HMRC. That way the tax you deducted will show against the reports you should have filed using the UTRs of each of your gang.
I really think you will need professional help from an accountant familiar with CIS (take care as not all of them are) to get this sorted....
have a read: https://www.accountingweb.co.uk/any-answers/cis-gang-leaders0 -
Thanks everyone for the advice it's all been a big help0
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