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contracting 20% deductions on labour HELP
i have a contract with a construction firm who are deducting 20% off labour costs on my invoices to them. the problem is how do i deal with these payments correctly. the figures dont match up when the payments come in. also i dont want that invoice then to be taxable as it has already been done.
cheers.
Tom
cheers.
Tom
I’m confused
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Inappropriate?The invoice is still taxable - you claim the 20% tax deducted as a credit on your 2010 tax return (if you're self employed) and as a credit on the 2009/10 P35 if you're a limited company.
You'll have to show the invoice as paid and treat the tax deducted as drawings from the business (self employed) or as a payment of PAYE if you're a limited company.
I’m happy
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Inappropriate?thanks foryour help stuart. i'm afraid i need it in simple terms for my wee brain though. i understand that it will be credited on the p35 but i don't quite get what you mean when describing how to deal with it in free agent.
so the current situation is that i have invoices that have been paid, but free agent says theres an outstanding balance. how do i treat the balance as PAYE?
thanks again, Tom -
