CIS income but no certificates

CIS income but no certificates

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I have a client who has a small amount of income from which CIS tax was deducted. I have his invoices showing the gross income and the amount received so can accurately gross it up, but he doesn't have certificates from the contractor and can't get them.
 
What is the procedure?  Do I gross up and claim on assumption that the contractor did pay it over, gross up and don't claim or put the net through?
 
Also some was deducted at 20% and a small amount at 10%!
 
Thanks
 

Replies (4)

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By claudialowe
25th Jan 2016 12:32

Can you prove it?

If you have got his invoices showing the gross amount, and his bank statements showing the net received, then that is good enough for me.  Re the 10% deduction - materials? 

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By icetory
04th Feb 2016 20:42

CIS income but no "payment and deduction" statement

Hi,

I have the same problem.

My client is self-employed and registered under CIS as a subcontractor, he issued invoices to a building company for labour, showing gross, CIS deduction and Net, received Net to his bank account from that company.

It is a subcontractor's liability to have received the deduction statements from his contractor, as CIS guide says. I called CIS helpline and they told the same. And there is no way to check if a company is registered as a contractor. 

So do I get it right, that I show the amounts received to bank and gross up the deductions which should have been paid by the contractor company? 

I mean what if that tax has never been paid, will my client be able to get it refunded by the HMRC and HMRC will try to collect it from the contractor?

Thank you!
 

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Johny Fartpants Picture
By johnny fartpants
04th Feb 2016 21:00

Newry Office?

I had similar problem a couple of years ago (subbie with no CIS certificates & contactor who refused to provide any information).

I was advised to write to:

HMRC, Customs House, Carnbane Way, Carnbane Industrial Estate, Newry. BT35 6QC.

Letter should explain the problem, what measures had been taken to get the missing certificates and why nothing had been received (plus details of how much received & when). HMRC would then write back with details of what CIS had been declared by the contractor.

Like I say this was a couple of years ago so I'm not sure if this is still the process CIS helpline were the ones who advised me of this process. Presumably a call to them would be able to confirm if this is still the best way to obtain your missing info.

Thanks (1)
Replying to petersaxton:
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By icetory
04th Feb 2016 21:22

thanks

Yep, I got the number to call from CIS helpline, to report that company is assumably not following the CIS rules. But this is not what my client wants to do. He wants to file his tax return and show the CIS deductions amount, but I don't feel this is a right way to do and think this will get him into trouble. 

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