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.
- Have I dropped a major clanger? 1,320 21
- VAT online filing exemptions 262 4
- Has anyone read the implications of the Lisbon treaty? 851 18
- NALS Accountants Report 98 1
- Do I need to report this to SOCA 3,466 35
- Legal title not in the company name 269 10
- Dividend dates 560 10
- simple one...capitalisation of legal fees on purchase of business 124 3
- Sole properietor 167 4
- transitioning payroll 236 8
- dividend proposals 104 2
- How to reclaim VAT that was missed off previous invoices? 231 2
- Deduction from Salary 295 8
- PPR exemption - can it be due on a bigger area than 0.5 hectares? 191 2
- Can I take action against my accountant for incompetence? 2,724 60
- Child Tax Credits - date of cessation of qualifying young person 88 2
- VAT on sales net of CIS suffered 437 10
- ACCA Cert/Dip in IFRS 158 2
- 12 Pay Problems 255 3
- Mutual trading organisation has chargeable gain 89 1
- Property exchange - 8-year legal delay following fall-out 624
- Cancelled 363
- SAGE Payroll Data for Import to MS Dynamics AX 342
- Cancelled 311
- Have you staged yet for auto enrolment? 283
- Probiz 271
- Free-standing washing machine - unfurnished lettings 231
- VAT on non-profit making clubs (ECJ VS West Dorset Golf Club) 230
- Phishing emails purporting to be from CIPFA? 202
- Is this UK incapacity benefit taxable in UK or Jersey? 176