What is the % split on invoices for scaffolding and labour

D

DTE

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I started a small partnership scaffolding business just over a year ago with a friend as we were both out of work and all we want to do is earn a wage each week rather than getting Jobseekers allowance. One of my customers have advised me that the HMRC have said I am charging to much for scaffolding against the labour and has taken away my invoices. I have searched the internet and can't find anything and have rang the HMRC who advised they could not advise me of the split. We don't have an accountant as we are just barely making a wage each week by the time we take off all our expenses. I put the total amount of the jobs on my tax returns so I don't understand what difference it makes. Can anyone advise me of how I should split the hire of the scaffolding to the labour of erecting and dismantling. Some of the scaffolding is our own and some we hire.:unsure:
 
The fact you hire may save your bacon, the fact that they don't tell you how to do the split means you make the call you just have to be ready with the answers when the awkward questions inevitably start.
 
DTE we dont split any invoice we just charge them a price to erect , dismantle the job why do they want it split ?
are you a LTD company or sole trader ?
 
I think you have to do it Phil when you don't have a UTR.
 
When I'm asked to split the labour element for our invoices,I tell them to take the 20% off the whole invoice as the difference at the end of each month is taken off what you pay in PAYE anyway.
Just make life a little easier for us......
 
We are a partnership and UTR registered but the customers that we do work for ask us to split the labour of erecting and dismantling separate to the scaffoling hire and the take 20% tax off the labour.
 
I'm now confused, are still we talking about tax? If we are and you have a UTR what's the difference? We just bill it out at the full estimate value and that's it?

Is it because they only want to pay a certain amount on the erect and the balance on the dismantle? If that's the case it doesn't matter to the tax man how you get paid just that you did.

---------- Post added at 01:02 PM ---------- Previous post was at 01:01 PM ----------
philliosmaximus said:
so what happens to the 20% ?
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I took it he meant he didn't have a UTR and if you split the invoice you only deduct the tax on the labour hence the split.
 
DTE said:
We are a partnership and UTR registered but the customers that we do work for ask us to split the labour of erecting and dismantling separate to the scaffoling hire and the take 20% tax off the labour.
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I think are saving you money

They do not want to take 20% Tax off your hire charges. (hope you are marking up your hire charges)

The 20% they take off labour (wages ellement+profit) is sent to the tax collector monthly

You can obtain the full amount of your invoices, by becoming a registered partnership with Inland Revenue and obtaining a business UTR.You can still be "Self Employed".
 
Thanks for your reply phill its much appreciated we do have a UTR number for both the partnership and one each for ourselves and we are classed as self employed. At the end of the last tax year we completed a partnership assessment and an individual self assessment. So we thought as long as we are declaring the full amount of the invoices as income what difference does this make as the tax man is still getting the tax owed. Just got worried as to why HMRC is saying we are charging to much for the scaffolding.
 
Strange one, I get told that all the time but not from the tax man.:cool:
 
LOL i once invoiced a customer for £33,000 for a £330 house front i thought the fu cker was gonna have a stroke when he phoned me as , it took him a while to tell me what i had done , he just kept say " iam not bloody paying that " :laugh::laugh::laugh::laugh:
 
The fekers always call you when you over charge but they never want to bring to your attention when you write an invoice for £3.33.:mad:
 
aom said:
The fekers always call you when you over charge but they never want to bring to your attention when you write an invoice for £3.33.:mad:
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The ba5stards never want to pay you when you have done a small extra, when you shove the book in front of their face for signing the usual lot of
***** is oh i thought that was in the contract or we have a lot of future work in the pipeline and if you let them off of a weeks extra hire do they thank you do they fxxk
 
I was on a job recently settling the final account. I'm not complaining too much as for once the guy was good to deal with and I did have to give him a discount to get it signed off. Since the scaffold was dismantled, they had to stack their site offices and asked if I would supply a stair tower, when I enquired about if that was to be added to the final account or just added to the site account they told me that their usual scaffolder just gives them stair access for nothing. Aye right, send 2 men 280 miles round trip in a truck 4 day's wages and all for nothing, the invoice went in the same day.
 
done a extra for a bloke once and he all ready owed me 160 so he wanted a couple of tubes moveing took about 20 mins, and he said how much do i owe you so i said call it 200 hundred, so he gos and pay me 360, do not get that very offten lol
 
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