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CIS late registration

RASRAS Well-KnownRegistered Posts: 124
Grateful for opinions. A potential new client is a painter and decorator who is increasingly sub contracting work but has never registered for CIS. A difficult one, but would you advise to register for CIS from now on or register late, potentially incurring at least a few thousand pounds in fines.

Comments

  • MonsoonMonsoon Font Of All Knowledge FMAAT, AAT Licensed Accountant Posts: 4,071
    Officially, I would have to advise to do it correctly, i.e. from the date subbie-ing started.

    I am sure lots of people in his position will register from now and get it right going forwards. If the subbies have been declaring and paying tax on the income then HMRC hasn't lost out (and thus no MLR implications). If the subbies have not been declaring the income, then there is more of a problem as by not registeing for CIS from the beginning, potential tax losses mean a possible MLR issue.

    Ultimately it is up to the client to decide what they want to do, and for you to outline the various options and consequences.
  • T.C.T.C. Experienced Mentor Registered, Tutor Posts: 1,448
    Totally agree with Monsoon. Officially from the start of the sub-contracting, but sensibly start NOW.
  • clegganatorclegganator Well-Known Registered Posts: 184
    Also agree but the final decision lies with the client. I can guess their answer, especially if you mention the P word!
  • RASRAS Well-Known Registered Posts: 124
    many thanks for the responses, agree with comments made.
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