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Posted Tue, 31 Oct 2023 13:27:41 GMT by Michael Peters
If I am doing a job for someone who is usually a contractor and deducts CIS from my invoice amounts, on this instance the contractor is the end user and I am working on his own premises, I realise the reverse charge isn't applicable and i charge VAT, but do they still deduct CIS from me? Is the general rule that if there is no reverse charge on the invoice , then there is no CIS deducted either? thanks in advance
Posted Tue, 28 Nov 2023 07:58:39 GMT by HMRC Admin 19 Response
Hi,

We can confirm that the CIS position will remain unchanged, and that the contractor will still be required to deduct the CIS at the applicable rate depending on whether the sub-contractor is registered for the CIS scheme or not. This will continue to be reported, as previously, by keeping a record of the gross payment amount so that they can be reported on their monthly returns.  
You can see further information on the contractor's CIS reporting obligations, specifically with the sub-contractor being registered for VAT at paragraph 3.22 here:

Construction Industry Scheme: a guide for contractors and subcontractors (CIS 340)

Thank you.
 

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