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Cis

jow774jow774 Trusted RegularRegistered Posts: 465
in General accounting discussion
This might be a stupid question, but I have a friend who has asked if I could do his self assessment return. He gave me a folder (a bit of carrier bag job) with all his documents in, I have sorted them and made some basic accounts from them, the problem is he is missing a 3 month chunk of cis vouchers. He says that as he was working as a gang for this period they were paid in one cheque between three of them and he wasnt the receipient of the cheque. In short how do I check if he paid tax on this money, I know the inland revenue are reluctant to give cis totals out now, has anyone had any similar situation?

Thanks in advance.

Comments

  • MonsoonMonsoon Font Of All Knowledge FMAAT, AAT Licensed Accountant Posts: 4,071
    He needs to write to his contractor to ask for copy statements. Note, there are no CIS vouchers any more now, you just are supposed ot get a statement from the contractor of deductions.

    If he doesn't have any joy with that, then he can write to HMRC to request copies, state the situation, state he has attempted to get copies, and hasn't had any response.

    They will give them out, but won't do it willy nilly, they will want the taxpayer to have made an effort to get the info from the normal route first.

    I believe it's the Carne Bane address, but the CIS helpline can tell you.
  • T.C.T.C. Experienced Mentor Registered, Tutor Posts: 1,448
    HMRC would not have copies of payment statements. These would be kept with the clients accounts and merely the amount of tax paid entered on the tax return. However the contractor is legally obliged to supply these monthly statements and to pay the tax due. He also has to complete monthly returns on these amounts - details of this information may be available from the HMRC (if you can get someone in a good mood to give you that information). The contractor can face severe penalties if he does not comply. All the information about what a payment statement should include, what the penalties for failure to provide them are, etc on the HMRC website. Hope that helps.

    However, if a cheque was issued to a gang someone else has probably claimed the payment statement and claimed the tax as paid by them, as the statement would have to have been allocated to one person. You should check out the circumstances of the payment as perhaps the person forwarding the money should, themselves, have been registered as a contractor.

    CIS can get complicated but then that is why we love it!!!
  • MonsoonMonsoon Font Of All Knowledge FMAAT, AAT Licensed Accountant Posts: 4,071
    T.C. wrote: »
    the contractor [...] also has to complete monthly returns on these amounts - details of this information may be available from the HMRC (if you can get someone in a good mood to give you that information).
    That's what I meant. I've successfully spoken to the Carn Bane department regarding this.

    Good point about the group meaning it might have gone under one UTR - if that's the case it might be trickier and the subbie may have to also talk to the 'gang leader'.
  • jow774jow774 Trusted Regular Registered Posts: 465
    Thanks for the advice, my main concern was about the gang situation as the client is adamant that they have tried to get the certificates but to no avail. I'll give the agent line a ring and see where I can go from there.

    Thanks again.
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