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As a sub contractor can I rent labour off a company.

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  • Liamevans21
    Liamevans21 Posts: 7 Forumite
    First Post
    Sole trader and yes it's CIS tax
  • Marcon
    Marcon Posts: 14,511 Forumite
    Ninth Anniversary 10,000 Posts Name Dropper Combo Breaker
    I'm a self employed sub contract roofer, I get all of my work through one company. The company i sub too also supplies labour at a cost of £250 a week towards the labourers wage. When I do my tax return amateur I able to put this through my return? I've spoken to my accountant and they said I'm not able too. Can somebody help please?
    Many thanks 
    Yes - your accountant. That's what you pay them for. You clearly think the advice isn't correct or you wouldn't be posting here, but your posts are quite hard to follow (you know what you mean, but not everyone else does!). Why not go back to your accountant and ask them to explain their advice, which is surely the safest and most sensible way to proceed?
    Googling on your question might have been both quicker and easier, if you're only after simple facts rather than opinions!  
  • Liamevans21
    Liamevans21 Posts: 7 Forumite
    First Post
    My accountant say no, but people who sub to the same company that have different accountants put them through thier tax return. I'm just after a second option as to who is right.
  • comeandgo
    comeandgo Posts: 5,930 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    edited 16 April at 9:48PM
    If they add the £250 into your income then the £250 costs can be claimed but if your accountant is taking the cash received as your income figure and adding back the cis tax deducted then the cost of the labour has already been deducted, you received less cash, so it can’t be deducted again.  It was usually apprentices that got charged out to the sub contractors but now labourers too.
  • Marcon
    Marcon Posts: 14,511 Forumite
    Ninth Anniversary 10,000 Posts Name Dropper Combo Breaker
    My accountant say no, but people who sub to the same company that have different accountants put them through thier tax return. I'm just after a second option as to who is right.
    Doesn't mean they are correct to do so, or even that they are actually doing what you think (or they claim) they are doing...talk to your accountant again.
    Googling on your question might have been both quicker and easier, if you're only after simple facts rather than opinions!  
  • sheramber
    sheramber Posts: 22,601 Forumite
    Part of the Furniture 10,000 Posts I've been Money Tipped! Name Dropper
    All you need to ask your accountant is why it is now deductible.

    What others do is not relevant as their accountant may  use different figure  for income. 

    One uses what you get paid into the bank , which is after deductions

    The other uses gross figure and deducts expense .

    Comes to the same in the end.
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