Cis

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Carole
Carole Registered Posts: 57 Regular contributor ⭐
in General accounting discussion
A newly self employed carpenter did add hoc work for two different builders during 2010/11.

He is registered with the CIS as tax deductable at 20%. His invoices show Gross, tax deductable and the net figure. He was paid the net figure but was never issued with CIS tax certificates. He has tried to contact both builders to obtain the certificates but they are now refusing to answer or return his calls.

Does he have any recourse on them? Can he still reclaim the tax on his tax return?

If anyone has any experience with this I would be grateful for any advice. I'm not a MIP just helping a friend.

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  • T.C.
    T.C. Registered, Tutor Posts: 1,448 Beyond epic contributor 🧙‍♂️
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    Yes, the contractors face big fines for not providing the CIS statements. I have found that letters to the contractors from myself do the trick.

    http://www.hmrc.gov.uk/manuals/cogmanual/COG909350.htm - check out table 2 link from this page

    If the contractor still fails to provide the tax statement, then send the tax return in with details of the CIS tax deducted and in the "additional information" box, give details of the contractors, the amounts etc.

    Hope that helps.
  • Carole
    Carole Registered Posts: 57 Regular contributor ⭐
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    Great - thank you
  • mc25
    mc25 Registered Posts: 232 Dedicated contributor 🦉
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    Definately agree with TC, alot of contractors try hoping they will get away with it. Good luck
  • PGM
    PGM Registered Posts: 1,954 Beyond epic contributor 🧙‍♂️
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    TC gave me some good advice recently. It looks like we need to be in CIS, hopefully we sort it out before any penalties catch up with us!
  • dantray
    dantray Registered Posts: 72 Regular contributor ⭐
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    Have you tried writing to HMRC for a statement of the account?

    I did this a while back in exactly the same situation - I had clients invoices showing gross, net, materials, etc, bank statements showing net payments into the account but the client had never been provided with deduction of pay certificates.

    I called the contractor up who hung up on me when I introduced myself as his subbie's accountant and advised I required the pay statements and from then on refused to take calls from me. Something didn't seem quite write about the whole thing.

    I then wrote to HMRC and then a few weeks later received a letter detailing deductions paid to them by the contractor for me to check against the invoices.

    I think they will only do this once - there was a closing statement on the letter that pretty much said in future it was the clients responsibility to maintain his own records or something to that effect.

    Thanks,
    Dan.

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