CIS deductions

cavework

One client has insisted we become CIS reg .. the others are charity exempt.
We come into a very grey area when it comes to CIS reg re cleaning but we have complied. At first we were being deducted 30% for each invoice until registration .. now it is 20%.
Our payments are going to be well over what we actually owe to HMRC at the end of the year but instead of being in our bank account HMRC are getting the interest and this will be ongoing!
How do I work out on each invoice the amount of consumables used that are not CIS applicable?I understand that hourly rate for employees is chargable but what about the rest?
We are cleaners and every job requires a different amount of cleaning materials used. The invoices are small ranging from £80 to max £200 exc VAT.
Does the fuel used come into this equation? This is all part of our charge for each property which is set at a standard rate for each job .. not hourly.
CIS helpline have absolutely no idea ..' we cannot advise you but it has to be considered reasonable' ??:rolleyes:
PS we do not do New build cleans
Is there anyone out there who understands this stupid system?
Thanks for any replies

Rolo_Tomasi

'Materials' in the sense of CIS means any direct costs associated with providing your services. They can include:

• materials
• consumable stores
• fuel used - except for travelling
• plant hire
• manufacturing or prefabricating materials

Are you self employed or a Limited company?

fengirl_2

I think you need to go back to basics and establish whether you really should be in the CIS. I dont understand your comment about charities being tax free.

Bean_Counter

To follow on from fengirl's comment, what cleaning do you do? Is it cleaning of admin facilities? You say that you do not do new builds, so I guess that you are not doing the 'internal cleaning of structurescarried out in the course of, or on completion of, their construction, alteration, extension, repair or restoration'?

DCodd

"Builders clean" is the only cleaning covered by CIS regulations i.e. cleaning while a construction operation is in progress or once one has just finished, this only applies if the Client is CIS registered. Regarding materials, you may have to provide reciepts for the Materials used as HMRC have said that Main Contractors have to prove that the Materials claimed are actual cost to the subbie and not profit margin adjusted.

Re Plant hire being expempt - it is only exempt if it is just the plant, if there is an operator that comes with the plant then it is not exempt i.e. the hire of a floor buffer with an operative.