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CIS - monthly return mistakes.....

CIS HELP PLEASE!

Limited Company

Had a few contracts with a company  over the past year. 

The main problemt is the CIS we have been deducted from the contractor.  I only have three returns from them and the amount they have paid over is well under the amount deducted from our invoices.

I also need help as we have a problem with the other side of CIS

My dad took care of this part and thought he only had to submit a return showing CIS stoppages by us if he could afford to pay the CIS stoppages.  That worked well until we got lots of subbies and my dad become ill and was unable to work and since then it all went a bit haywire - there are about £6k worth to payover - but due ti the contractor now owing the company £95k there are insufficient funds and was hoping to offset against the CIS paid on invoices - but an additional problem then arises if the contractor will not declare the stoppages?!!

1) what can I do about the money we have stopped?  Do i just complete a monthly return and add the contractors and deductions on this month?  How much trouble will we be in if I arrange to amend previous returns would need to amend June July Aug 2012

2) who to deal with the sh*t who is not paying over the CIS - and owes us a fortune!

Thanks for all your help

Julia

Replies

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29th Jan 2013 09:26

Are you trading as a limited company?

A internet forum like this is not the place for detailed advice.  You should go and see a local accountant.

However, it makes a lot of difference if you are a limited company because a company can offset the CIS tax deducted from its sales income against the CIS and PAYE tax deducted from its sub-contractors and employees.  If so, your father may well have been right in thinking that he needed to file only the monthly CIS300 returns and never pay the £6k over.  On the other hand, if your father was a sole trader, he should have paid over the £6k and claimed the CIS suffered on his personal tax return.

 

"The main problemt is the CIS we have been deducted from the contractor.  I only have three returns from them and the amount they have paid over is well under the amount deducted from our invoices."

How do you know what the customer may have paid over?  If you talk to an accountant and give him the full facts, he should be able to advise you on what to do about the contractor.

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