CIS query

charlz87

Hi 
We have been running a plastering business for the past 3 years under a partnership, myself, my husband and his parents. 
We have just completed a job for a customer and they have deducted a CIS payment from the bill. We are not registered for CIS and I am struggling to understand why they would take this money off when we all pay our own tax at the end of the year. I have read up on CIS as I knew nothing about it until today and it seems that we are being classed as a subcontractors. We didnt realise the job in question was being paid to us by the building company that the customer is using to re-build their property and not directly by the customer which has made things more confusing. 
We plan to do more work for this customer as he has multiple properties that he is renovating and will apparantly be paid in the same way. Please can you advise if we need to register for CIS and if so how it will affect other jobs we do. We mainly just work for residential customers and bill them directly and they submit and pay a tax return at the year end. If we need to register, do I register the company or each individual as the bill we sent was as a company and a lump sum was deducted from this?

Thanks in advance.

DullGreyGuy

You said you were a partnership at the start but you later say you are a company? What is your legal structure?

charlz87

DullGreyGuy said:

You said you were a partnership at the start but you later say you are a company? What is your legal structure?

Sorry we are a partnership. I personally work for a company as an employee also so mixing my terms, sorry again.

charlz87

The final part should read
If we need to register, do I register the partnership or each individual as the bill we sent was as under the partnership and a lump sum was deducted from this?

sheramber

https://www.gov.uk/guidance/register-a-partnership-as-a-subcontractor-or-apply-for-gross-payment-status

TheSpectator

1) I'm surprised that someone involved in 'trades' has never heard of the CIS scheme before and never been treated as a sub-contractor before now.
2) Being un-registered should have resulted in a 30% deduction.
3) Registering will result in a 20% deduction.
4) If you meet the strict criteria you may be able to apply for gross payment status.
5).What does your accountant say?

LITRG

Hi there, you might find our guidance on CIS helpful in understanding the scheme, whether to register, how it impacts your tax return etc: https://www.litrg.org.uk/working/self-employment/construction-industry-scheme-cis