Missing CIS Vouchers - Advice Please

System
System Posts: 100,537 🤖 Admin 🤖
edited June 9 in General accounting discussion
Further to my recent posting, I have been advised by HMRC that my client must show evidence from the contractor that the tax was taken. My client issued an invoice and payment was made less the tax, as shown on my client's invoice. My client does not have a bank account so there is no record of cheque payments. The contractor refuses to return my calls. I have reported all this to HMRC and they are asking for evidence. Where do I go from here?

Comments

  • System
    System Posts: 100,537 🤖 Admin 🤖
    Re:Missing CIS Vouchers - Advice Please

    You say he was paid by cheque but has no bank account. I assume therefore he was paid cash.

    Presumably if the contractor has sent in his annual return then HMRC should have a record of your client's payment. Maybe you could point HMRC in that direction.

    In the absence of the contractors annual return the only way from what I can see would be to continue to badger the contractor and tell your client to do the same as well.

    Kind regards
    Steve
  • System
    System Posts: 100,537 🤖 Admin 🤖
    Re:Missing CIS Vouchers - Advice Please

    Yes, he was paid by cheque, but used a company called "cheque converters" or something similar, who cash cheques for a small percentage. No records are therefore available for the cheques.

    I have pointed out the contractor's annual return, but HMRC don't seem to want to discuss this.

    I am continuing to badger the contractor, but even when I get hold of him by phone he is too busy to speak and will call me back later - of course he never does. My next step is a letter to him by recorded delivery requesting a response in a more assertive manner. Any suggestions for its content?
  • System
    System Posts: 100,537 🤖 Admin 🤖
    Re:Missing CIS Vouchers - Advice Please

    HMRC can be so annoying at times. They want us to do their job for them! It would be so much easier if they would just go to the annual return by the contractor and check it for themselves - though undoubtedly this would mean someone getting up off their chair and actually doing sometimes for themselves - HMRC don't seem to have the ability or inclination to do that!

    I would just write an assertive (though professional) letter requiring the relevant documentation within a period of 7 days.

    Did "Cheque Converters" not provide some sort of receipt to your client. I know this in itself would not be "concrete evidence" but it is a start.

    Sometimes these subbies are hard work! There are a couple of them I deal with and expect us to work miracles with only the revenue as "assistance". Swimming with your hands tied behind your back springs to mind in this instance!

    Good luck.

    Steve
  • System
    System Posts: 100,537 🤖 Admin 🤖
    Re:Missing CIS Vouchers - Advice Please


    Might the contractor not have submitted a return?

    He doesn't sound too 'honest'. Perhaps that is the problem - the tax was deducted, but never paid to HMRC.
  • System
    System Posts: 100,537 🤖 Admin 🤖
    Re:Missing CIS Vouchers - Advice Please

    I have written to HMRC asking them to check whether the contractor has submitted an annual return and whether my client's tax was included - this is the best evidence they can get afterall.
    I will also be writing to the contractor asking for the information requesting within 7 days (as suggested).
    Watch this space! :roll:

Categories

Privacy Policy