CIS - is my client a contractor?

Gem7321

I have a client who is a general builder/decorator. During the year ended 5 April 2011 he made a payment to a chippy. Client has no PAYE/CIS scheme in place. Should my client have deducted CIS and registered as a contractor and submitted a return?

His customers are the general public - I believe this has some bearing on whether they are counted as a contractor but I'm going round in circles!

Many thanks

Monsoon

Yes, I believe he should have been under CIS.

I think the general public thing is that a member of the general public can never be a contractor, but if they engage the services of a tradesman, and the tradesman farms all or part of the work out to another tradesman, that then forms a contractor/ subbie relationship with the tradesmen.

Fingersan

Hi

I feel that technically, yes, your client should have registered as a CIS contractor, deducted the 20% (assuming the 'chippy' was verified) and the submit a CIS300 return. This does seem a bit of overkill for possibly a 'one-off' job but your client is in the construction industry and they are the rules.

I don't think I would take any action for 5 April 2011 if this was one of my clients depending on the amounts involved but I would certainly mention to them the requirements of CIS going forward.

Hope this helps.

Regards

Gem7321

Thank you for your replies, I have made a letter point to my client as I very much expect this was a one-off

Dean

Gem ensure you do write that letter! Just to cover your ass so to speak.

Regards

Dean

Gem7321

All done Nice to hear from you Dean! Where have you been lurking?