cis subcontractors

Hi all

I need some advice over how to deal with subcontractors who never have any receipts, but still expect to claim tax deductions, I know it's common in this trade but wanna know what I can do lto help claw back what they have spent. Obviously credit card statements, back tracking for invoices etc, but if they don't hsve these documents, what would surfice for Hrmc and what levels would be unacceptable if they did spend the money but can only provide logs of the transactions.

Any help would be appreciated new starter to mip so wanna make sure I am fully aware of my options.


  • ehill
    ehill Registered Posts: 4
    Hi, I have a few clients that are subcontractors and I understand where you are coming from. I only put through expenses that I have receipts for or can prove are genuine from bank/credit card statements. For example if the client often fills the company van with £50 worth of diesel and there is no receipt, but it theres a £50 visa transaction on the bank statement at a petrol station, then I put it through. I do accounts on all information provided by the client, if they can't provide it, it doesn't go through. Sounds harsh, but they soon learn, they soon keep all of their receipts for the following year, which makes my life easier and helps them in the long run. I'm sure others may do things differently, but I prefer to be able justify every expense I put through. Hope this helps.
  • Gem7321
    Gem7321 MAAT, AAT Licensed Accountant Posts: 1,438
    It depends how much we are talking about but I would accept reasonable estimates and advise the client accordingly that in the event of an inspection they would need to be prepared to justify these. Get the estimates in writing as well or at least record a file note that the client has provided them.
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