Should all subcontractors included the gross payment ones be included on the monthly return?
First return is due next month, however client has paid a subcontractor in January. This subcontractor had gross payment status but they were not registered as a contractor or filling out monthly returns then. Should they call hmrc to explain, I assume there will be penalties. Kind of annoying as no tax actually lost out on by hmrc,
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Include all subcontractors
My understanding is that you should include all the CIS subcontractors on your CIS submission including gross subcontractors - it is what we do and better to send all details and not get a penalty than the other way round.
I'd suggest calling the HMRC CIS helpline on 0300 200 3210; they can advise as to if you should have submitted a CIS return for January. They may well give you a penalty but you have the option to appeal and in my experience they will accept the appeal providing you have a valid reason and have then submitted the return as soon as possible.