CIS - is my client a contractor?

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Gem7321
Gem7321 Registered Posts: 1,438 Beyond epic contributor 🧙‍♂️
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

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  • Monsoon
    Monsoon Registered Posts: 4,071 Beyond epic contributor 🧙‍♂️
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    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
    Fingersan Registered Posts: 84 Regular contributor ⭐
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    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
    Gem7321 Registered Posts: 1,438 Beyond epic contributor 🧙‍♂️
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    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
    Dean Registered Posts: 646 Epic contributor 🐘
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    Gem ensure you do write that letter! Just to cover your ass so to speak.

    Regards

    Dean
  • Gem7321
    Gem7321 Registered Posts: 1,438 Beyond epic contributor 🧙‍♂️
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    All done :) Nice to hear from you Dean! Where have you been lurking?
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