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Cis tax

paulrpaulr Feels At HomeRegistered Posts: 48
Good evening,
one of my clients has been informed that a company that he undertook subcontract
work has gone into voluntary liquidation.
Invoices issued have been paid but there is a probability 2k of tax has not been forwarded
to HMRC;
there is a distinct probability that my client will have a large income tax bill;
any suitable advice to mitigate the losses,
best wishes,
PaulR.

Comments

  • RASRAS Well-Known Registered Posts: 124
    So long as your client has received all his money, CIS tax has been correctly deducted and he has all the paperwork, then I don`t think it his problem that the money has not been forwarded on to HMRC. I cannot see that HMRC will chase your client.
  • MonsoonMonsoon Font Of All Knowledge FMAAT, AAT Licensed Accountant Posts: 4,071
    RAS wrote: »
    So long as your client has received all his money, CIS tax has been correctly deducted and he has all the paperwork, then I don`t think it his problem that the money has not been forwarded on to HMRC. I cannot see that HMRC will chase your client.

    Agreed.
  • T.C.T.C. Experienced Mentor Registered, Tutor Posts: 1,448
    Yes, as long as your client has CIS deduction statements from the contractor, then he should be fine. However, this type of incident, in my experience, does sometimes start an enquiry.
  • paulrpaulr Feels At Home Registered Posts: 48
    thanks
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