CIS payments help

Just after a bit of advice on CIS payments. I’m a self employed electrician and I have started a job wiring a new build property for a builder. The quote I gave him includes materials and labour now there has been mention of pay via CIS ie 20% deduction. How would this work regards the materials side of things? The quote was just one whole price not a breakdown of labour and materials and I will be making money on materials and when I send the final bill I don’t want the client to know exactly how much I have spent on materials, so can I put down a materials cost including my profit on them and pay 20% on the remainder of money or do I have to list the exact amount I have spent on my materials? Thanks

As CIS is on labour only, you need to mention labour and materials separately on invoices to your contractor. You can add your mark-up on material and then show on your invoices, it does not have to be on cost to you

Thanks for the reply. That’s ok then so if materials cost say £1000 I can put on my invoice materials £1500, if that’s the way it works can’t I just put 90% of the job as materials? Also I’ve had someone work for me during, do I pay 20% cis then have to deduct another 20% when I pay him?

if material cost is not 90% of your project and channelling labour cost as material, that’s tax fraud
Any subcontractor you have is subject to CIS deductions through you