first paid job coming my way...

[MrSpoon]

got a friend who works for a property developers and ive been asked to go and have a look at one of the appartments they are building as it needs tiling, and all being well i could get the contract to complete all 24... one thing i am unsure of tho is supplying materials...

his company are adament that they want the tiler to supply all the materials, including tiles, but... if i was to supply and get paid.. say £1000.... but 500 was for tiles and materiels... the taxman would still tax me for earning 1000........ yet i havent earned 1000 ive earned 500 as the supplys cost me 500... im confusing myself as i type this haha and i know sopmeone will say just put in my books that ive been paid 500, but the company will sort out my CIS tax or whatever (totally confused myself with this now) so the taxman will still have 20% of my 1000 earnings no matter what ive spent on materials and supplys... i think?

my brains all gone to mush now but yeah if anyone can shed any light or somehow explain what im on about then id really appreciate it

[diamondtiles]

the tiles and adhesives including other costs such as travel expenses and van maintenance costs and stationary can all be 100% offset against the total earnings which are classed as gross turnover. once you take away other expenses you get net profit before tax and it is this figure you are taxed on

[grumpygrouter]

You need to get an appointment with an accountant/ business advisor, Spoon so that they can explain to you how things work.

[diamondtiles]

no need to be calling people offensive names

[MrSpoon]

cheers, diamond
grumps, girlfriends mother is an accountant so ill pick her brains tonight

[Fekin]

All materials are classed as expenses, so you don't get taxed on them, unless you add a profit onto them, then you will be taxed on the profit of the materials.

Basically, you take your £1000 cheque, but offset the £500 as costs because you'll have a reciept for them as expenses, so the £500 for materials is deducted from your £1000 leaving you with £500 profit, then your taxed on that £500.

[MrSpoon]

i understand that part, its jsut the CIS im not totally sure about, as far as im aware whichever contractor im working for will keep my tax for me and pay it at the end of the year on my behalf i think? so in their eyes they have paid me 1000... but would they just pay 20% of my 500 on my behalf?

[grumpygrouter]

Originally Posted by mrspoon

i understand that part, its jsut the CIS im not totally sure about, as far as im aware whichever contractor im working for will keep my tax for me and pay it at the end of the year on my behalf i think? so in their eyes they have paid me 1000... but would they just pay 20% of my 500 on my behalf?

No, CIS deductions are only for labour and mileage. Materials are disregarded. You must state materials separately. Also they should be paid over monthly by the contractor and you receive a statement of deduction every month. This is you proof for your tax return.

[MrSpoon]

ah ta very much grumpy, thats what i was trying to get at

another thing tho... ive been told time and time again that you cant use 240 volt tools on site.. so where the hell am i gonna plug my electric cutter.. or is it a case of buying a 110volt one... or a generator and a trip to the van jobby

[grumpygrouter]

Don't do site work myself but I think you need to get 110 v equipment!

[MrSpoon]

great!

[john t]

looks like things are coming on nice and smoothly