Fola

Hi, I have a subcontractor who has provided work under the scope of CIS for say £2,000. They have applied the reverse charge on their invoice. As they are under the standard CIS deduction rate of 20%, they have applied this 20% to the Gross value. So invoice states work done for £2,000, VAT reverse charged - £400, CIS deduction - £400, amount payable to supplier - £2,000. Since they have applied the VAT reverse charge, are these amounts correct or should it be - work done for £2,000, VAT reverse charged - £400 (but not applied so £0), CIS deduction - £400, amount payable to supplier - £1,600. Most of our subcontractors have gross status which have always made things easier. Thanks