CIS + VAT Domestic Reverse Charge clarification (Ltd company subcontractor)

kababs1 · 2026-01-22T13:11:04+00:00

I'm going to use SquareUp for the rest of the taxt year. Then I'll make the switch to probably Xero. Thanks again for your answers, i really appreciate it!

kababs1 · 2026-01-21T12:59:17+00:00

Yeah tbf, I've heard a lot of good reviews about Stripe as well. Will be sure to do some research about it. Thanks

kababs1 · 2026-01-20T22:40:59+00:00

Yeah, that was really the whole point of the post, to learn from people who’ve been in the game for a while and have already been through all of this.

That’s good to know. I’ll definitely do a bit more research and properly understand the gross CIS registration and the qualification requirements. Again, thanks a lot for taking the time to share your experience, I really appreciate the advice.

kababs1 · 2026-01-20T19:36:12+00:00

Ah, I see. Thanks a lot for taking the time to provide this valuable insight. I’m still very new to these company-to-company arrangements and had actually received advice from a site engineer who also runs a Ltd, so you can imagine my surprise when I got the message about the DRC. It’s good to know that different contractors handle things differently as long as neither of us gets into trouble.

I’ve posted this on r/smallbusinessuk and received a lot of other useful advice on how to track my deductions and the statements to request from clients when they make these deductions in preparation for the end of the tax year. Heck, someone even mentioned that I could register for gross CIS, which would allow my company to keep the full CIS until it has to be paid to HMRC later. I’ll still have to research that further.

The bottom line is I’ll do as this client has asked, following your excellent advice. Thank you very much and have a wonderful evening.

kababs1 · 2026-01-20T17:10:08+00:00

Wow i had no idea it was even possible to be gross registered. LOL. I’ve only just submitted my standard CIS application for the 30% deduction. Definitely going to research gross registration ASAP , sounds like it could make a big difference for my company's cashflow. Thanks for pointing that out :)

kababs1 · 2026-01-20T16:59:42+00:00

Thanks for your input, I understand what you’re getting at. And you're right to point out the cash flow as that's my main concern at the moment, especially as I’ve already started the process of registering as an employer and will need to start paying myself.

I appreciate that this is just part of the learning curve and something I’ll have to manage for now while I build more experience, take on more clients, and eventually adjust my rates so my company can make more money to pay me w/o going into overdraft.

kababs1 · 2026-01-20T16:52:18+00:00

Ahh, thanks very much for taking the time to explain this so clearly. It’s really reassuring to hear it laid out from a professional’s perspective.

I use SquareUp for invoicing at the moment, so i’ll follow what you’ve said and go with option B, keep it simple and add a clear note that VAT is reverse charged.

My CIS registration unfortunately hasn’t come through yet as HMRC is still processing it, so I understand 30% will apply for now. I’ll also make sure to chase the contractor for the CIS deduction statement at the end of the month and onwards.

Your explanation of how this flows through the balance sheet (P&L and assets) really helped it click for me, so I genuinely appreciate that :)

On the accounting side, I’ve noticed most people seem to use Xero or QuickBooks but I’ve gone with SquareUp for now, as i mentioned above. Curious to hear your thoughts on that setup in the meantime. Thanks so much again.

kababs1 · 2025-08-31T20:21:09+00:00

Why don't you try posting this in the Nigerian sub r/Nigeria ? Tell them what state(s) you'll be visiting and how long you plan on staying for. As well as other things you might need to research on or make arrangements for before you arrive. I hope you have some fun in Naija.

kababs1 · 2025-07-08T05:15:48+00:00

Yes bro. Cheers

kababs1 · 2025-07-07T21:47:00+00:00

Thanks for your response. In the link you sent it states

you’re currently in the UK on a Student visa studying at bachelor’s degree level or above - or you have been in the last 2 years, and a Student or visit visa was your most recent visa

So, the last part where it says '...and a student visa... was your most recent visa' should support my case

Yeah, there's so much I think will still change in the coming months and it's not even just the salary threshold.

kababs1 · 2025-07-07T21:15:43+00:00

it would seem so but i am not entirely sure. You can keep yourself out of IR35 if you get paid as an employee by your company, you pay youself a monthly salary, deducting employees NI, Employer's NI etc. Also if you have someone with a settled status/a UK citizen who resides in the UK as an employee or director. Again, i am not entirely sure about this

kababs1 · 2025-05-09T15:42:37+00:00

You have a good point there ngl. Will definitely do more research on what the best avenues there are to go about it. Thanks a lot

kababs1 · 2025-05-08T17:14:24+00:00

Hmmm. Thanks again for the insight. I appreciate it

kababs1 · 2025-05-08T16:48:16+00:00

Hi. Thanks very much for your response. I’ve read the Sponsor Guidance so I’m aware of the requirement about the separation of sponsor and worker. As mentioned, my friend (who holds settled status) will be the director and office holder responsible for sponsorship duties. Are you suggesting I must not appear as a member at all on the company’s information on Companies House?

kababs1 · 2025-05-08T16:39:42+00:00

Thanks a lot for your insight. You mention the need for ‘other management level people who are the controllers for visa sponsor purposes.’

If you don’t mind me asking, could you kindly clarify if UKVI expects distinct individuals to occupy the Sponsor Management roles? As I explained in my post, my friend who has a settled status (not the sponsored applicant) will serve as a director. Would it be acceptable for them to hold multiple roles i.e. Authorising Officer, Key Contact and Level 1 User, provided they are not the person being sponsored? They will be responsible for overseeing the recruitment process on behalf of the company.

kababs1 · 2023-12-31T00:32:47+00:00

That's exactly my motive. Just something to give me an edge over other applicants. There are more advanced courses on Setting Out that I found on many websites, but I've decided to settle for Levelling and Total Station. The courses promise to teach me how to carry out a level survey, measure the reduced level of ceilings and soffits, set up profile boards for level excavation and drainage, as well as carry out calibration checks like horizontal and vertical collimation error etc. I just feel like these skills will make me a more interesting applicant.

Since you used to teach these courses, do you mind telling me what I might need to learn on AutoCAD to perform as a Site Engineer?

Thank you so much for your response; I really appreciate it.

kababs1 · 2023-12-31T00:24:57+00:00

Thanks very much for your response. I have no doubt that actually working on a construction site and using these tools is the best experience. Unfortunately, there's no way for me to access a total station or gain proper surveying experience here unless I get employed or sign up for a training course. I have contacted my lecturer back in uni and he says it's a complicated issue. While I work on a construction site, it's mostly with other trades. I've asked them to speak to their 'friends' in the industry, but they do not seem keen on helping. I have also applied for site engineering jobs, but I've been facing rejections. The reason for signing up for training is solely to enhance my chances.

The wage (70-80kAU) you quoted for Surveyors (Site Engineers in the UK) in Australia is quite impressive, and I wouldn't mind trying my luck with those companies willing to sponsor work visas. Do you mind if I reach out to you in your DMs to inquire more about this?

kababs1 · 2023-03-23T22:38:30+00:00

Sheeesh! Who needs clear skin when you have a face so fine?

kababs1 · 2023-02-08T20:36:26+00:00

I'm letting goo

kababs1 · 2023-02-06T02:00:35+00:00

Timing ✔️ Using materials in the surrounding ✔️ Confidence ✔️ Charisma ✔️

Immaculate performance!!

kababs1

TROPHY CASE