Whose responsibility to provide CIS certificate of tax deducted under old rules | AccountingWEB

Whose responsibility to provide CIS certificate of tax deducted under old rules

Hello All

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.

Many thanks





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valentino rossi |
valentino rossi's picture

Thanks to the previous poster - however...

Anonymous |

Whose responsibility for CIS Cert.

Bronco |

Looks like this could be the failing of the contractor

valentino rossi |
valentino rossi's picture