Sub Contracting...

[Burslems finest]

Hi all, long time voyeur, first time thread maker. My situation is this, i was self employed contracting to a tiling company for many years. I did not supply anything but my labour. My invoices looked like this ; labour £100 Less 20% tax Nett £ 80. Every month they gave me a piece of paper telling me how much i'd earnt and what tax i'd paid. Simples!
Then, work dried up somewhat, and i went cards in (painful, but necessary) so for the last eight months i was an employee. Last week the plot thickened when the company merged with another and asked me to go back self employed. This i am very happy to do but they want me to supply everything as well. I've got some prices together (i'd be interested to know an average price for supply and fix) but i'm worried about how much i'll be taxed and how to present my invoices.
For instance let's say i supply and fix for £10 per sqm (just an example this ain't my price!!) and do 10sqm =£100, do they then take the 20% straight off (if so i'm taxed on my adhesive and grout purchases etc) or do they not take anything off?
They did ask me to get CIS and not wanting to appear a numpty i just said ok without actually knowing what it means. I've looked it up and like most tax stuff it's pickling my brain. I've arranged a meeting with my accountant who is ace at just explaining this stuff to me in laymans terms, unfortunately i can't see her until tomorrow tea time and i've got to give them this price by tomorrow lunch.. Can anyone help??

 

[Tony73]

hi, on your invoie if you charge £10 per sq.m . lets say you fifed 100sq.m of tiles and supplyed 30 bags of adhesive etc. so your total for materials is £500.

Invoice

fixing tiles £1000.00 less %20 tax. £800.00

Materials £500

Total: £1300.00

 

[Colour Republic]

No you separate the materials so x amount labour + x amount mats = total invoice. Then depending on which CIS code you get they either tax you on your labour or you have to sort your own tax out

 

[Diamond Pool Finishers]

i would never supple materials unless they payed up-front ,as they should take some of the risk, as well as you if payment is not forthcoming they are trying to have there cake and eat it IMO......

 

[Tony73]

Very true DPF, so you send invoice for deposit.

Invoice
for work to be carried out:

fixing 100sq.m of tiles

labour £1000.
materials £500

deposit: £500.00
balane £1000.00

next invoice

£deposit paid £500.00
labour £1000.00 les %20 tax £200.00

Total: £800.00

or £1000.00 and you pay tax your self

 

[Burslems finest]

Thank you. so, i can't go in at an all-in price i have to separate, i get it!

 

[Tony73]

good luck

 

[Burslems finest]

i would never supple materials unless they payed up-front ,as they should take some of the risk, as well as you if payment is not forthcoming they are trying to have there cake and eat it IMO......

I have no qualms about this, they are prompt payers and i trust them, and know all of the management etc.

 

[kilty55]

clarify are they paying your tax or are you ,dont assume they are and dont put anything about tax on the invoice imo

 

[Peter]

I do mine like

Labour £100
Less tax at 20% £80

Add Materials £50

Total £130