CIS to Own business

[Roofer2plasterer]

I'm on cis scheme but the clown i get most of me work off hasn't give me a sniff of work for a month

Thinking about bombing him off and putting ad in paper. on cis my tax was paid and i did my own tax return, what would i need to do different if i set up on my own ???

 

[bigsegs]

just go down tax office and tell em you wanna be main contractor, pretty much the same except you can pay subbies..
they'll ask you what you call your business and send you all the guff..

 

[Roofer2plasterer]

thanks

 

[richardbrown]

just go down tax office and tell em you wanna be main contractor, pretty much the same except you can pay subbies..
they'll ask you what you call your business and send you all the guff..

Thats not strictly true i dont think,

To be able to pay a subbie properly you need 3 years books proving that your income is 30k + to show the tax office so they can change your status to contractor if you dont do that then you do the following.

FOR EXAMPLE:
Take on that job for £10,000 gross from harry
your subbie wants £125 per day and you agree to give him 25 days.
when you invoice harry he pays you £8,000 net out of which you have to pay the subbies tax . so really you are paying tax twice.( you will get it back when you do your return).

Rich Brown

 

[gps]

register as a soletrader is the easiest way then gat an accountant is very easy

 

[murplastering]

if you are paying cis then your already a sole trader but if you want to take on subbies its a world of hurt as said in earlier post you can end up paying double anthrax if working for contractors if for public make sure you get invoice for any lads you hire

 

[TonyM]

As long as you're making a minimum of 20% on your blokes, then the tax deducted is bareable. I've done this for the last few years and have had some nice rebates from the tax man.

 

[murplastering]

good point

 

[richardbrown]

problem is at the moment money is so tight its trying to get the jobs at a price where it allows you to pay double bubble and still make a living

To be honest im having trouble with that here as there are to many wankers out there willing to work for f**k all.I just priced up a job at £4000 to get it ..... phone rings sorry mate had another for £2800,I only worked the job out on £125 p/d
Rich b

 

[gps]

if you are paying cis then your already a sole trader but if you want to take on subbies its a world of hurt as said in earlier post you can end up paying double anthrax if working for contractors if for public make sure you get invoice for any lads you hire

Your not, cis tax is deducted for you soletrader your liable for your own tax and can employ others,as a sole trader you can only turnover I think its about 68000 then you have to become a ltd company soletrader is very diffirent from cis.

 

[TonyM]

I'm a sole trader, registered for CIS as a contractor, not limited and turn over a lot more than 68K. There are no limits for being limited like there is for vat. Being limited is a choice. I mentioned to my accountant about going limited and he said don't bother. In my opinion, the small businesses that automatically go limited when they start, are the ones that want to shirk their financial responsibilities should their business fail.