How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask Sam Your Own Question

Sam
Sam, Accountant
Category: UK Tax
Satisfied Customers: 12933
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Capital Gains, CIS ask for Sam Tax
16196420
Type Your UK Tax Question Here...
Sam is online now
A new question is answered every 9 seconds

An electrician has a certificate which allows him to get paid

Resolved Question:

An electrician has a certificate which allows him to get paid GROSS under the CIS scheme .He is now to work as a limited Company for which he will be a director and shareholder.The question is can he use his personal GROSS certificate on behalf of the Company until the Company applies and gets it`s own certificate to be paid GROSS?
Submitted: 1 year ago.
Category: UK Tax
Expert:  Sam replied 1 year ago.

Hi

 

Thanks for your question

 

It probably will not surprise you to hear that the answer is no, the gross certificate is allocated to the work you undertake under a specific status, so current CIS certificate is for work as a sole trader only, ands you must wait for the outcome of the limited company application to see if gross status can be awarded there too. In the meantime you will have to suffer 20% tax deductions.


However, as a limited company you can offset the tax suffered against tax you have deducted and would usually pay over to HMRC (known as a set off)

 

Thanks


Sam

 

 

Customer: replied 1 year ago.


Thank you ,is there any requirements that the Company will have to fullfill in order for the gross status to be awarded.

Expert:  Sam replied 1 year ago.

HI

 

Yes there are three tests

 

Business Test

Compliance Test

Turnover test

 

These require the following

 

Business test

 

You'll need to show HMRC that your business:


  • carries out construction work - or provides labour for construction work -
    in the UK
  • is run largely through a bank account

 

Turnover test

 

HMRC will look at your business turnover from construction work for the 12
months before you apply for gross payment status. Ignoring VAT and the cost of
materials, your construction turnover must be at least:

 


  • £30,000 if you're a sole-trader
  • £30,000 for each partner in a partnership, or at least £200,000 for the
    whole partnership
  • £30,000 for each director of a company, or at least £200,000 for the whole
    company

Thanks


Sam

Customer: replied 1 year ago.


Will he be able to deduct any tax deducted at source from any Corporation Tax liability?

Expert:  Sam replied 1 year ago.

Hi

 

No - I am afraid only offsets from CIS tax suffered. (Not corporation tax or own self assessment tax)

 

Thanks

 

Sam

Customer: replied 1 year ago.


How will he then re-claim any excess CIS deducted at source?

Expert:  Sam replied 1 year ago.

Hi

 

Yes that is included in his CT return - but this is detailed with the calculation due for the period.

I thought you were asking whether it could be used against outstanding CT due. (so an immediate set off)

I do apologise

 

Thanks


Sam

 

 

Customer: replied 1 year ago.


Sorry ,there appears to be some confusion about my question.Assume that the Company has excess tax deducted at source than that deducted from it`s subcontractors!If he can`t offset this against the Companies CT liability ,how then will the Company physically receive these excess tax deducted at source?

Expert:  Sam replied 1 year ago.

Hi

 

As a limited company you would show the income earned through your CT return and then for the CIS suffered on that income either

1) can be set off against CIS collected and PAYE deductions made (so this reduces the payment paid over to HMRC each 19th of the month (and you would file a CIS return and a FPS under real time information AND show the CIS suffered so that HMRC knew what to expect from you as payment ) OR

2) Reclaim all or any excess at the year end

 

See link here and see under heading Reclaim CIS deductions taken from payments

http://www.hmrc.gov.uk/cis/sub/p35return.htm#5

 

 

 

Thanks

 

Sam

 

Sam, Accountant
Category: UK Tax
Satisfied Customers: 12933
Experience: 26 HMRC expertise, PAYE, Self Assessment ,Residency, Capital Gains, CIS ask for Sam Tax
Sam and other UK Tax Specialists are ready to help you

JustAnswer in the News:

 
 
 
Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.
 
 
 

What Customers are Saying:

 
 
 
  • I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response... T.G.W Matteson, IL
< Last | Next >
  • I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response... T.G.W Matteson, IL
  • I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight. Bonnie Chesnee, SC
  • Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation. John Minneapolis, MN
  • Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with. Orville Hesperia, California
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex Los Angeles, CA
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP Hesperia, CA
 
 
 

Meet The Experts:

 
 
 
  • Andrew Baker(baktax)

    Personal Tax Adviser

    Satisfied Customers:

    756
    35+ years experience in income tax, CGT, non-residence
< Last | Next >
  • http://ww2.justanswer.com/uploads/baktax/2009-7-15_202414_Frame.jpg Andrew Baker(baktax)'s Avatar

    Andrew Baker(baktax)

    Personal Tax Adviser

    Satisfied Customers:

    756
    35+ years experience in income tax, CGT, non-residence
  • http://ww2.justanswer.com/uploads/teap007/2009-01-10_145815_bill_justanswer_for_profile.jpg TEAP007's Avatar

    TEAP007

    Tax Preparer

    Satisfied Customers:

    754
    Fully Trained Inspector of Taxes / District Inspector/ Team Leader/ Offshore Consultant/ 41 years
  • http://ww2.justanswer.com/uploads/BE/berduchwal/2011-6-7_84817_pict0854.64x64.jpg berduchwal's Avatar

    berduchwal

    Accountant

    Satisfied Customers:

    669
    Qualified accountant and bookkeeper running my own practice since 2008.
  • http://ww2.justanswer.com/uploads/JO/Josh2010/2012-4-29_19490_GettyImages80121770B.64x64.jpg Joshua's Avatar

    Joshua

    Lawyer

    Satisfied Customers:

    61
    LL.B (Hons), Higher Prof. Dip. Law & Practice
  • http://ww2.justanswer.com/uploads/RO/Ronaann/2012-3-19_23343_SSL22629.64x64.JPG Mrs-Tax's Avatar

    Mrs-Tax

    Tax Adviser

    Satisfied Customers:

    59
    Law Degree, 19 years in UK Tax.
  • http://ww2.justanswer.com/uploads/TG/TGraham12/2012-7-17_81212_bigstockBusinessHandshake508163.64x64.jpg Thomas's Avatar

    Thomas

    Solicitor

    Satisfied Customers:

    48
    Exposure to general tax issues
  • http://ww2.justanswer.com/uploads/struppiaml/2009-10-9_95150_anthony_business_002.jpg AnthonyL's Avatar

    AnthonyL

    Tax Adviser

    Satisfied Customers:

    19
    ATT, ATII, 12 years tax experience
 
 
 
Chat Now With An UK Tax Professional
Sam
Sam
Tax Consultant
6328 Satisfied Customers
26 HMRC expertise, PAYE, Self Assessment ,Residency, Capital Gains, CIS ask for Sam Tax