4. Labour Only Payments
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When calculating the total labour only emoluments you have made, you must consider payments to all subcontractors not just those receiving net payments. Any subcontractor, regardless of size (i.e. including those paid gross) can potentially work for you on a labour only basis. Labour only is determined by contract, not the CIS method of payment.
What
must be included in LOSC declaration?
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Payments to subcontractors employed on a labour only basis
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Employment agencies and labour agencies
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Payments made through purchase ledger (invoice) for labour only
Do Not Include
:
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Payments for materials
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Payments for work outside NI
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Any of the subcontractor payment if the materials supplied represent more than 10% of the total invoiced for the work
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Contractors included in CITB NI's the current Registered List of Levy Payers*
You should encourage subcontractors to detail the type and cost of materials and equipment provided on their invoices as this will help when you need to establish whether they are labour only or not.
The total CIS payments can be found by adding together the totals from each of the 12 monthly CIS300s which your business would have submitted to HMRC in the tax year.
* The Registered List of Levy Payers is available to all registered CITB NI employers when you
log onto our website.
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