Contractor's not issued CIS vouchers

System
System Posts: 100,534 πŸ€– Admin πŸ€–
edited 12:08PM in AAT member discussion
I'm doing the tax return for an (overly eager!) subbie. He did a lot of work in Aug/Sept 06 for a contractor who, despite several stern letters, has not issued CIS vouchers. There's a letter here from the contractor asking for his NI number so that he can issue the vouchers, so it's not like he's disputing that they're due, but the subbie has never received them.
I know from previous experience that you can explain the situation on the tax return and deduct the witheld tax from the tax liability, but do you think that I should give the contractor at least until 19 May to issue the vouchers? The client is anxious to get the return filed as he's going to be due a refund.
Has anyone had to deal with this situation before? if so please let me know what happened
thanks
jodie

Comments

  • System
    System Posts: 100,534 πŸ€– Admin πŸ€–
    Re:Contractor's not issued CIS vouchers


    I have a similar problem but from the other side.

    I am a contractor that can't issue my final vouchers because I don't have them yet!

    Apprently there is a backlog. I'm assuming they didn't want to have masses of obselete stock on 6th April.

    Helen
  • System
    System Posts: 100,534 πŸ€– Admin πŸ€–
    Re:Contractor's not issued CIS vouchers

    Hi Jodie

    I would wait until you have the vouchers before submitting the Return to HMRC, simply because if you don't have the vouchers, then neither will HMRC.

    The tax deducted per the Return will not match up with what HMRC's system says has been deducted, and even though you will have explained the situation, they will not repay the tax overpayment until they have the vouchers from the contracor. I have seen this happen before.

    As Helen says, it could be because he doesn't have any vouchers, but I would contimue to chase him for them, or ask your client to chase him (if you think they will have more luck).

    Tom
  • System
    System Posts: 100,534 πŸ€– Admin πŸ€–
    Re:Contractor's not issued CIS vouchers

    Hi Jodie

    I had a similar problem, the difference was my client never received the CIS vouchers even after speaking & writing to the contractor who kept on saying that he was on with it and then he had sent the vouchers out, but my client never received any. I contacted the CIS helpline and they told me which vouchers they had on file for the client from contractors up to date, none had been submitted from that particular contractor. They then advised me how to deal with the situation on my clients tax return, and they are (suprise suprise) keeping me up to date with the situation, that is still on going, but my clients tax has all been sorted.

    Charlotte
  • System
    System Posts: 100,534 πŸ€– Admin πŸ€–
    Re:Contractor's not issued CIS vouchers

    Thanks :)
    I doubt that he will ever get the vouchers, he's been chasing for 6 months now with no luck, but after what you've said I think it'll be less hassle to put it on hold for a few months before, on the off-chance that they do arrive.
    Charlie - are you saying that HMRC have deducted the tax from your client's liability before receiving the vouchers from the contractor?
  • System
    System Posts: 100,534 πŸ€– Admin πŸ€–
    Re:Contractor's not issued CIS vouchers

    Hi Jodie

    Yes that right I had to submit with the tax Return copies of the invoices sent to the contractor and copies of my clients bank statements showing that payments had been made with the deductions from the contractor and a letter stating why there was a difference in the deductions in the Tax Return and the vouchers submitted.

    Before I submitted the Return I also wrote to the Revenue stating that my client had not received any CIS vouchers, but payment had been made with deductions. I explained that my client had spoken and wrote to the contractor chasing the vouchers and that I had also chased the contractor on my clients behalf, I asked if they could look further into the situation and gave them the contractors details.

    I received a nice letter back thanking me for informing them of this matter and that they would look into it and keep me informed.

    When I submitted the Tax Return I also sent copies of the letters both sent and received on the matter.

    Hope this is of some help.


    Charlotte

    Charlotte
  • System
    System Posts: 100,534 πŸ€– Admin πŸ€–
    Re:Contractor's not issued CIS vouchers

    I have a similar problem too. My client, a sub-contractor, has not received his vouchers from one particular company. I have written to them twice with no response. Perhaps it is time I wrote to HMRC with all the details then.
  • System
    System Posts: 100,534 πŸ€– Admin πŸ€–
    Re:Contractor's not issued CIS vouchers

    I've had subbies who have had refunds despite no vouchers. In the white box I gave the contractors name and address and amount of tax deducted.

    Refund was paid up promptly.

    I guess it all comes down to whether HMRC have received the money from the contractor or not.

    Claudia
  • System
    System Posts: 100,534 πŸ€– Admin πŸ€–
    Re:Contractor's not issued CIS vouchers

    it probably also depends on whether the person at HMRC who picks it up is having a good day or not :lol:

    Thanks for your help, I've spoken to the client and suggested we wait until the end of May just to make sure that they don't arrive

    Claudia, are you saying in your case that the subbie had just lost the vouchers?
  • System
    System Posts: 100,534 πŸ€– Admin πŸ€–
    Re:Contractor's not issued CIS vouchers

    No, he had never been given them - so we agreed to wing it and see what happened :shock:

    Claudia
  • System
    System Posts: 100,534 πŸ€– Admin πŸ€–
    Re:Contractor's not issued CIS vouchers
    so we agreed to wing it and see what happened
    :lol: paid off to!
  • System
    System Posts: 100,534 πŸ€– Admin πŸ€–
    Re:Contractor's not issued CIS vouchers

    Just wanted to share my good news - I waited until a few weeks ago to submit this client's tax return to ensure that the contractor was definately not planning on sending the vouchers, and then sent off copies of invoices & bank statements and a letter explaining the situation to HMRC. Today I got notice of my client's repayment of tax! I'm very surprised that it was that easy and I hope that that's the last I'll hear about it.
    :)
  • System
    System Posts: 100,534 πŸ€– Admin πŸ€–
    Re:Contractor's not issued CIS vouchers

    Great News Jodie, sometimes the Revenue does suprise us. Bet your client is very happy and its another file that you can now put away and forget about for a while.

    :D
  • System
    System Posts: 100,534 πŸ€– Admin πŸ€–
    Re:Contractor's not issued CIS vouchers

    luckily i can put it away & forget about it forever! he's been employed since the start of 07 so no more tax returns for him :)
  • System
    System Posts: 100,534 πŸ€– Admin πŸ€–
    Re:Contractor's not issued CIS vouchers

    I have a similar situation, but the revenue are still arguing. I have no bank statements to offer, just copies of invoices. Did they question your letter or just send the refund?
  • System
    System Posts: 100,534 πŸ€– Admin πŸ€–
    Re:Contractor's not issued CIS vouchers

    They just sent the refund - didn't ask any questions.
  • System
    System Posts: 100,534 πŸ€– Admin πŸ€–
    Re:Contractor's not issued CIS vouchers

    Amazing. I am still arguing this for my client. What is your secret?
  • System
    System Posts: 100,534 πŸ€– Admin πŸ€–
    Re:Contractor's not issued CIS vouchers

    pure luck :wink:
  • System
    System Posts: 100,534 πŸ€– Admin πŸ€–
    Re:Contractor's not issued CIS vouchers

    I am still chasing this one. The tax office have just decided to check the contractor's annual return to see if my sub-contractor appears on the paperwork! They are getting clever aren't they? I will let you know how things progress.

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