Home For accounting professionals General accounting discussion

CIS - statements of deduction

PoodlePoodle Experienced MentorRegistered Posts: 711
Hi

We are a couple of years into the new scheme now and you would think that contractors would have got their act together.

Once again this year I am having clients in, sub contractors, that have been given no statements of deductions as evidence of CIS being deducted or pieces of paper showing an amount being deducted with no contractor details on, ( in particular the contractors employer reference number) and some subbies are still raising invoices to contractors calculating a deduction for CIS on them.

I do ask clients to ask for this information and point out the dangers but it is always problematic. How do others deal with this?

Bring back the old voucher scheme, i say!

Comments

  • PAMDILLPAMDILL Experienced Mentor Registered Posts: 718
    I am the bookkeeper for a contractor/subcontractor, it amazes me how many of my subcontractors still call me up when they get their monthly payment statement to ask what it is!

    Fortunately we only occasionally carry out subcontract work ourselves but even with that I have had difficulty getting statements of deduction from contractors - even some of the big household name companies.

    I definitely would not like to see the voucher systems back as I find this one so much easier paperwork wise, I am especially glad to get rid of the year end forms, monthly reports so much easier!!
  • T.C.T.C. Experienced Mentor Registered, Tutor Posts: 1,448
    I print off the HMRC guidance on what information to include on a payment statement and also a copy of the penalties, then I tell my sub-contractor client to take this to the contractor and suggest that he deals with it or his accountant (me!) will inform HMRC. It usually gets a good response.
Sign In or Register to comment.