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CIS Non-payment

Sandy DogSandy Dog Settling In NicelyMAAT, AAT Licensed Accountant Posts: 25
A client of mine, a building sub-contractor, has invoiced his client, a building contractor, and in his invoices has shown the correct CIS deductions that need to be made and passed on to HMRC.

I asked HMRC for a breakdown of CIS received on behalf of my subcontractor and the contractor has only passed on one of a number of payments due but has also made two small payments which I do not recognise.

HMRC told me it was not their issue to recover the amounts but for my subcontractor to approach his contractor and seek the payments.

I shall challenge the contractor but what action can I take against him for his failing to carry out his duty?

I would appreciate any pointers in the right direction.

Comments

  • lisajayne1lisajayne1 Registered, MAAT, AAT Licensed Accountant Posts: 50
    I believe this is true as I had this happen to a client of mine. The agent line (HMRC) told me to claim the cis deductions as usual (providing you have evidence) It is then between HMRC and the contractor to solve this issue. The contractor has withheld money falsely and this is a legal matter for him to solve.

    Your client has had this tax deducted in good faith
  • Sandy DogSandy Dog Settling In Nicely MAAT, AAT Licensed Accountant Posts: 25
    Hi Lisa

    Thanks for this, it's good to hear your experience.

    I have sent the contractor the account as I see it and asked him to verify sooner than later with the SA deadline approaching.

    I think the money has not been passed on in error, to perhaps a wrong account, rather than having been withheld deliberately.

    So I'm giving him the opportunity to put things right without involving HMRC.

    Thanks for your help

    Regards


    Trevor
    lisajayne1
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