CIS chaos

Monsoon FMAAT, AAT Licensed Accountant Posts: 4,071 🎆 🐘 🎆
I have a subbie who hasn't submitted returns going back as far as 0708. HMRC were threatening daily penalties so I filed estimated returns based on the info provided by my client, while I waited for Newry to write with CIS details received from subcontractors on their monthly returns.

These have now come in, and they are a mess! They don't tally up at all with the original documents my subbie has given me.

Occasionally they tie up, but it looks like the contractor hasn't declared all of it.

HMRC are withholding my client's refund subject to tax returns reconciling with their own CIS records. They have said to write in, with copies of all of the deduction statements and wage packets I've got, and my schedule of what I think his income and deduction was, and they will take it from there.

Before I do that, has anyone else come across this before and have any pearls of wisdom for me?

Thanks :)


  • stefanboro
    stefanboro Registered Posts: 187 🎆 🐘 🎆

    I deal with CIS quite a lot but have thankfully managed to avoid this sort of thing.

    I suppose all you can do is submit your calculations (I imagine your client never registered for CIS and was therefore deducted CIS at the higher rate? - this is vitally important) and then see what HMRC responds with.

    Keep me updated though as I am curious to see how this pans out. I am about to make the leap from practise to a relatively large contractor company as a full internal accountant. I may be dealing with this sort of mess more and more.
  • Monsoon
    Monsoon FMAAT, AAT Licensed Accountant Posts: 4,071 🎆 🐘 🎆

    He was registered; all deductions at 20%, he just didn't do tax returns! Will let you know what happens.
  • T.C.
    T.C. Registered, Tutor Posts: 1,448
    Sounds really good fun! Interested to see how it turns out! Good luck.
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