Accounting Principles and Procedures Part 1

Material: £50+vat

Material costs account for a significant portion of the total invoice, with the current figure standing at £50+vat.

Total invoice: £150+vat (£180)

The total invoice, including VAT, totals £180. It’s essential to note that the VAT rate may vary depending on the specific services or goods being purchased.

Total paid to Subcontractor: £160.00

The subcontractor’s invoice, which includes both labour and plant elements, totals £160.00.

Total paid to HMRC by the Contractor: £30.00

The contractor has paid £30.00 to HMRC, which is the amount of VAT due on the total invoice.

You can play around with the spreadsheet.

Refer to the Construction Industry Scheme (CIS) for more information on tax deductions.

CIS deductions can include any expense that is essential to the business, such as equipment purchases or software licenses.

References