Whose responsibility to provide CIS certificate of tax deducted under old rules
We have a client under enquiry for 2006/07. Our client is a builder working almost exclusively as a subcontractor under the then CIS scheme.
HMRC are contesting some bankings on his bank account which relate (according to our client) to income earned from a main contractor. Contractor did not provide CIS certificate or other evidence of tax paid.
HMRC are refusing to give credit for the tax credit claimed under CIS, thereby leaving our client with a tax liability. They are also seeking to charge a penalty.
We have evidence that our client has made every effort to obtain a CIS certificate/proof of deduction. He does have remittance advices from this contractor which give the contractor's UTR no and VAT no. He used these to make his SA return. (he did this himself and we did not act at this time).
It seems unequitable that HMRC are seeking to tax our subcontractor because of the apparent failings of the contractor. I intend to rebut the point on the basis that it is the contractor's duty to provide a certificate of tax deducted and there is nothing else our client could have done, given his efforts. He can prove the payments came from the said contractor by reference to copy cheques and remittance slips/bank references.
Any opinions particulary with direction to the appropriate legislation would be most welcome.
- PI insurance for Auto Enrolment 164 2
- Accounting Practice acting as an employment agency 264 12
- payroll software 57 1
- No Tax Returns submitted for last 16 years 1,031 25
- Complicated Company car purchase 60 1
- Pricing 315 10
- Late VAT registration penalty 232 5
- Partially exempt? 217 7
- Mexican student in UK 90 1
- Dividend in specie 184 3
- VAT on imports and the Flat Rate Scheme for VAT 139 7
- Lorry Drivers 104 1
- VAT 111 2
- QuickBooks, Xero, FreeAgent and ClearBooks 835 18
- Twenty signs your practice is bad at tax 618 7
- Rental Income Tax Planning 200 3
- Vat 88 2
- Auto-Enrolment 3,823 184
- Method for filing 2013/14 payroll? 125 2
- Incorporation Relief 127 2
- Skandia using wrong address 472
- Does anyone use PS Financials accounting software out there? 274
- FHL, period of grace and Entrepreneur's relief 267
- Employee rewards 256
- Legislation access for part-time sole practitioner? 216
- Rental Property W&T And Equipment 213
- EPS Analysis - Change to EURO 210
- Gift of reversion and lease into trust by two different people - later PPR 199
- Etax Australian 168
- Annual Management Charge Rebates and Self Assessment Tax Return 155