VAT and CIS payments

[pftmonojetman]

If i invoice a contractor for money how is it worked out i cant find relevent info on net,

for easy reckoning £100 a day is it ____
£100 - 20% cis = £80+ vat = £96 or
100+vat =£120 - 20% cis =£100
The contractor wont tax me 20% on my day rate plus vat will he? cheers

 

[gary]

cis on labour content only, example: £100 labour
plus vat 20%£20.00
subtotal £120.00
deduct 20% cis on £100.00 = £80.00 ( £20.00tax)
total £80.00 + £20.00vat + £100.00

 

[gary]

cis on labour content only, example: £100 labour
plus vat 20%£20.00
subtotal £120.00
deduct 20% cis on £100.00 = £80.00 ( £20.00tax)
total £80.00 + £20.00vat = £100.00

0r £600.00plus vat = £600.00
vat £120.00
sub total £720.00
deduct 20%cis on £600.00 = £120.00
net labour balance £480.00
plus vat £120.00
total £600.00

 

[pftmonojetman]

Good man cheers Gary.

 

[goody]

we state what proportion of labour versus materials there was on a job like skimming for 70/30% lab/mats so only 70% of the bill is taxed

 

[Johnathon]

Hello Mate
Never done it that way just invoice them the full amount and they have done the deductions, have worked for some that have not bothered with it and remember they will need your unique tax reference number to deduct the 20%