CIS Contractor goes bust
CIS Contractor goes bust.
Liquidator publishes list of creditors including £300,000 owed to HMRC. No monies available for unsecured creditors.
My client has been a subbie to the main contractor for 2 years. 20% deductions always taken.
Last 3 months my client wasn't paid; strung along with promises, refinancing, all be sorted soon, etc.
My subbie client is owed £10k gross. Is there a case for saying that £2k of this is owed to HMRC and £8k owed to my client.
If not why not. How could anyone ever establish the makeup of the HMRC Creditor of £300k?
Anyone come across a similar situation?
Thanks to any respondents.