i have a new client and on reviewing the tax payments i see that last year he has had to pay CIS that had not been deducted as he paid the subbie gross. can this additional tax paid be a deduction as he has paid the subbie and the CIS. For reference the CIS was calculated on what was paid and was not grossed up
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Why did he pay the CIS tax?
Was he not able to ask for a Reg 9 determination? And if he wasn't, did he not try to recoup the tax from the subbie?
Apart from that, I can't see why it wouldn't be dedcutible as a bona fide business expense - it's not interest and it's not a penalty. Only question may be W&E test.