UTR - worth it?

[Verona]

Hi mates,
Just got a request for a very small floor job (8m2) and was asked to provide the UTR no for payment.

The sq meter price is low as labour only (they set the price at £15/m2) and I was then thinking that if they deduct the tax already now, we would only get paid £12/m2 now - not near the usual day rate in the region of £140-160 a day.

As we have quoted for other jobs the last two days and already 3 of them accepted to start next week I am a bit concerned about the low price though the company 'promise' more jobs in future. (How can I be sure as it will be the first job for them anyway...)

What would you do?

Cheers,
Stina

 

[kilty55]

hi verona sorry im a bit lost is this a company you have quoted 4 jobs for? and are about to do the 1st one? and have had the other 3 accepted?

 

[Verona]

hi verona sorry im a bit lost is this a company you have quoted 4 jobs for? and are about to do the 1st one? and have had the other 3 accepted?

The 3 accepted jobs are for domestic customers paying 'full price' so only the 1st job of 8m2 is to be paid usign UTR.

 

[david campbell]

not only do you have 20% deducted for tax maybe more depending on your earning,you will have to pay NI contributions on this earning,also consider travelling costs and public liabilty payments then it would seem a lot less than you originally calculated,but then if theres a promise of any continuity of work it might be worth it,just watch out case the client is carrot dangling!

 

[Deleted member 9966]

what's UTR? 😳

 

[david campbell]

what's UTR? 😳

unique tax reference-it raplaced the cis(construction industry scheme) for tax payments

 

[Deleted member 9966]

thanks dc.. learn something new everyday

grumpygrouter might also be able to help on this one... he's an accountant I believe

 

[david campbell]

thanks dc.. learn something new everyday

grumpygrouter might also be able to help on this one... he's an accountant I believe

i should hope so :lol::lol::lol:

 

[Frosty]

It all depends on whether you want all the money now and have to pay the tax/NI elements later, or have it deducted straight away and offset against earnings later.

I use various subbies, some prefer to know their tax is dealt with there and then so they don't have to find it later, others want it all now and then moan when they've got to find a shed load of money already spent which should have been put aside.

Personally, if the other jobs are bigger earners, I'd go for them first (whether taxed or not).

 

[Verona]

not only do you have 20% deducted for tax maybe more depending on your earning,you will have to pay NI contributions on this earning,also consider travelling costs and public liabilty payments then it would seem a lot less than you originally calculated,but then if theres a promise of any continuity of work it might be worth it,just watch out case the client is carrot dangling!

That is what I'm thinking. We are paying insurance etc monthly anyway so it looks more like being employed by a company doing it that way - I have been told by a plumber we work with that he tends to avoid this but if needed put the price up to cover the tax deducted so the pay at the end of the day remains the same. This is not possible at this point as that company works with a fixed lower price.

I'm just wondering if they have experienced being turned down due to less earning for the trade man... And I never trust promises of more jobs until booked as nobody can guarantee jobs in the current climate, can they? :lol:

It all depends on whether you want all the money now and have to pay the tax/NI elements later, or have it deducted straight away and offset against earnings later.

I use various subbies, some prefer to know their tax is dealt with there and then so they don't have to find it later, others want it all now and then moan when they've got to find a shed load of money already spent which should have been put aside.

Personally, if the other jobs are bigger earners, I'd go for them first (whether taxed or not).

The tax has to be paid anyway, but it is the dealing of paying some now, paying some later and then calculate in the end what needs to be paid against what has already been paid that looks confusing to me.

But I'm happy to hear that I'm not the only one thinking to go for the high earner jobs first.

Cheers, mates! :hurray: