Client late on CIS returns and verification

Client late on CIS returns and verification

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Client has not submitted CIS Subcontractor Returns for 8 months and been deducting 20%. He wants me to file the CIS300

One subcontractor is not registered under CIS but my client has only deducted 20% instead of 30%.  I understand the subbie has left.

He is still trying to get the subbie registered under CIS but presumably the date of registration will be this month and that the CIS registration cannot be backdated ?

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Euan's picture
By Euan MacLennan
21st Apr 2017 13:40

Which CIS300 return? One for each of the 8 months or were you thinking that you could just file one "annual" return for the month ended 5th April 2017?

Has he been paying over to HMRC the CIS tax he has been deducting each month? If not, getting up to date with his returns might be the least of his problems.

Why would your client - the contractor - be trying to register a subbie (who has left) for CIS? The subbie must register himself as a CIS sub-contractor. If he was not registered for CIS, your client should have deducted tax at 30% and is liable to pay the extra 10% to HMRC.

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By Jim100
21st Apr 2017 14:56

On your questions I was planning to file for each month

He has not been paying over the CIS over to HMRC

Sorry client isn't trying to register the subbie but asking the subbie politely to register

Question is if the subbie registers now will HMRC backdate the registration to say 8 months back. If not then my client will then become responsible for the additional 10% ?

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Euan's picture
By Euan MacLennan
25th Apr 2017 18:06

I am puzzled and need clarification.

If the client is registered as a CIS contractor, has he been filing CIS300 returns in respect of other subbies and paying over the tax deducted from them? In this case, the client has generally complied with his obligations, but has omitted one subbie.

Or is this the client's only subbie and the client has not submitted any CIS300 returns? If so, he must have been receiving lots of penalty notices, so what has he done about them?

Or is this the client's only subbie and the client has not registered as a CIS contractor?

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