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CIS pay company fees

kuoL
kuoL Posts: 10 Forumite
I have worked for a few agencies last tax year and they use payroll companies. This means every week I pay approx £22 to them for processing my wages.
The company you use is usually decided by the agency you work for. One company I have used deducts the admin fee after tax is deducted. The others deduct the admin fee from my pay then tax the remainder.
One speaking to one of the women at one of the payroll companies, she said that fee is not something I could claim back because it was taken before I was taxed. Something just doesnt seem right about this. Can I not claim this expense back? Should they be taking money from me before ive been taxed? Any one can shed some light on this matter be real help, thanks.

While Im here is there any where I can find a list of things I can claim back for. I am an electrician. For example Im talking about lunch per day or a certain amount for house bills being my place of work. If so how much and do I need reciepts?

Comments

  • Blind1979
    Blind1979 Posts: 13 Forumite
    Starting point is that I assume all your income goes through these payroll companies. If so, you are an employee.

    The only things you can deduct are itesm that are "wholly, exclusivley necesarily" for the purpose of your job.

    Lunch will not count as it is dual purpose, eg you need it to live. To do your job as an electrician do you NEED to incur that payroll expense? I suspect not as many other electricians are employed without incurring it.

    House bills again are unlikely to qualify as they are not necessary to undertake your job as an electrician.

    A case a few years ago concerned a vicar. He purchased an OHP to do a presentation. As he was employed the claim was rejected as the OHP was not necessary to do his job. Thats the hurdle you face being an employee.

    As to what you can claim, you will be limited. Post your expenses and people will try to help.
  • kuoL
    kuoL Posts: 10 Forumite
    Firstly thank you for the reply
    I would not agree I am employed, i recieve no benifits that an employee would and i pay my own nics. Due to the work i am undertaking i have no choice but to pay the admin fee. You could argue that i could find work else where, but to what end? I should search high and low to find a less convienient job in order to avoid an agencies fee? Thats rediculous and never going to happen. Therefore i would say ive no choice and it is only because of my work that i incure this charge.
    What would you say now?
    Also im abit concerned about them taking my money before its been taxed, is this allowed?!. (cleary i know nothing, apoligies if this is a stupid question)
    I use my pc, electric, printer, phone etc etc. for work related tasks like invoices emails you know paper work and what not. obviously i use it for other stuff but i just wonderd if some one could tell me an acceptable calculation or general rules. Im not looking to scrap the barrell just want to do it correctly.

    Thanks
  • John_Pierpoint
    John_Pierpoint Posts: 8,393 Forumite
    Part of the Furniture 1,000 Posts
    edited 21 April 2013 at 3:27AM
    CIS stands for Construction Industry Scheme - so how much are you paying in terms of that weekly tax called National Insurance ?
    [When I worked in the construction industry it was half a lifetime ago - when you might well have been "on the lump", so hopefully someone with current knowledge of administering the CIS will be along to advise]

    To quote a chippie of 2000 years ago "the tax system should be made for man not man for the tax system" [mind you he did also say something about paying that which is Caesar's to Caesar and it did take another 400 years before the then tax system fell apart under the pressures of excessive welfare spending, when its ever expanding empire started contracting].
  • kuoL
    kuoL Posts: 10 Forumite
    None of the tax is national insurance, I have to make them contributions myself. Totally seperate.

    That same chippie is Lord and Saviour. I pray his return be swift and save us all from this system of things.
  • John_Pierpoint
    John_Pierpoint Posts: 8,393 Forumite
    Part of the Furniture 1,000 Posts
    Yes but the type of national insurance you choose to pay defines to the tax man what sort of employment you are claiming.
    My bet is that you are paying this sort of "self employment" national insurance ?
    http://www.hmrc.gov.uk/working/intro/class2.htm

    [National insurance is just another tax; especially for the self employed, that conveniently does not have "tax" in its title.]
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