Client builder has received income gross in 2014/15 even though registered net under CIS scheme.
Their customer has been approached by HMRC for non-deduction of CIS tax and is having an assessment raised. However, all amounts have been declared in accounts and corporation tax paid on it.
I remember many years ago seeing some guidance where HMRC would not collect the actual CIS deductions from the customer if you could show that the income had been declared and had tax paid on it, they would just issue a penalty based on the figure for non-compliance instead. But I can't remember if this was the old CIS scheme (pre 2007) or the current one.
Is anyone aware if this is the case still and if so, where the guidance would be?
Replies (2)
Please login or register to join the discussion.
This could be the Regulation 9 relief you are talking about. Try HMRC manual CISR83000 onwards.
Please tell me more about "vague memory relief" as I think I may be eligible to claim it!
RM