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Post Info TOPIC: New CIS deduction rates
rowets


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New CIS deduction rates
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Hi all,

Hope you may be able to help on this one;

I am presuming that since the instigation of the new Construction Industry Scheme on 6th April 2007, all deductions made by Contractors at the standard rate should have been made at 20% on the amount owed to the Sub Contractor after deductions of the usual materials, equipment hire etc, providing that the Subbie has been verified, if the Subbie hasn't been verified then the deduction should have been at the higher rate of 30%.  I am also presuming that those rates were prevailing for the whole of the 2007-08 tax year, and are still the current rates today.

Are my presumptions correct?  I ask because a client has just presented me with his records in order to complete his 2007-08 tax return and all of his deductions (he is verified) have been made at 18%, which I think is incorrect.

Any help appreciated.


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Tim Rowe
TSR Accountancy & Bookkeeping Services
Nimac


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I have done some work for construction companies this year and the rate of deduction was 20% not 18%.

I think it might be best for you to call HMRC to check if the rate was different last year but i don't think it was.

Nigel.

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rowets


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Hi Nigel,
Thanks for that, I thought the 20% was correct. Hopefully someone else may be able to verify but I will contact HMRC anyway.

Tim

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Tim Rowe
TSR Accountancy & Bookkeeping Services
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