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CIS debtor

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Could i have some advise on how to treat this. 

My client has a customer that dedcuts CIS from him. This client (a company) has gone bust owing my client quite a bit of money. My question is how should i treat the CIS aspect of this bad debt? My client has no idea if the tax has been paid over (contractor not commumicating). 

Doesn't the CIS invoice have to have been paid to be able to claim the tax back on the tax return? 

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By Cloudcounter
15th Jan 2020 09:39

CIS tax is deducted from payments so if an invoice hasn't been paid there is no deduction.

Provide the full amount of the invoice(s) (less VAT if relevant)

It doesn't matter if the CIS for previous payments hasn't been paid over to HMRC, provided that your client has the monthly statement as evidence. The client can still claim the credit. If they don't have the statement, they will need other proof of payment, usually the entry on the bank account

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By lionofludesch
15th Jan 2020 11:20

Agree with the above. If the client's not been paid, the tax won't have been either.

The tax isn't due until 14 days after the end of the month in which the client is paid.

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