Cis tax

paulr
paulr Registered Posts: 48 Regular contributor ⭐
in Tax
Good evening,
one of my clients has been informed that a company that he undertook subcontract
work has gone into voluntary liquidation.
Invoices issued have been paid but there is a probability 2k of tax has not been forwarded
to HMRC;
there is a distinct probability that my client will have a large income tax bill;
any suitable advice to mitigate the losses,
best wishes,
PaulR.

Comments

  • RAS
    RAS Registered Posts: 124 Dedicated contributor 🦉
    So long as your client has received all his money, CIS tax has been correctly deducted and he has all the paperwork, then I don`t think it his problem that the money has not been forwarded on to HMRC. I cannot see that HMRC will chase your client.
  • Monsoon
    Monsoon Registered Posts: 4,071 Beyond epic contributor 🧙‍♂️
    RAS wrote: »
    So long as your client has received all his money, CIS tax has been correctly deducted and he has all the paperwork, then I don`t think it his problem that the money has not been forwarded on to HMRC. I cannot see that HMRC will chase your client.

    Agreed.
  • T.C.
    T.C. Registered, Tutor Posts: 1,448 Beyond epic contributor 🧙‍♂️
    Yes, as long as your client has CIS deduction statements from the contractor, then he should be fine. However, this type of incident, in my experience, does sometimes start an enquiry.
  • paulr
    paulr Registered Posts: 48 Regular contributor ⭐
    thanks

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