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CIS Agent & Returns

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I have a new SA client, going through the process of setting up to be his agent at the same time as finalising my agent issues, I applied for my Payroll/SA/CT codes and got SA/CT but no payroll, do I need to wait until I get my own auth code for SA before I can apply for CIS as its not letting me. 

In the mean time, hes deducting CIS at 20% as that was what his previous payslips were at, and invoicing directly to his boss but not doing anything with it, does he need to submit a month return - as I wont be able to login before the 19th to do it for him. Whats the result/penalty if he doesnt submit anything?

Thanks

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By Matrix
16th Apr 2019 20:19

Is he a sub-contractor, so suffers deductions at 20%? Then the contractor reports and pays the CIS deducted and provides the CIS voucher which you need for his tax return.

If he is paying sub-contractors then he will need a PAYE scheme and to submit monthly CIS. You would need an agent PAYE gateway account to do this for him.

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By Clare_K
16th Apr 2019 20:30

He was through a company that sorted his CIS out for him and just gave him a payslip with it deducted.
Now he is on his own, writing out the invoices and deducting 20% to his customer and getting paid the net.

I'm totally aware I need to get set up as agent CIS but timings mean I need to finish authorising my SA or it wont let me :/

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Replying to Clare_K:
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By Matrix
16th Apr 2019 20:52

If I have understood correctly he is a sub-contractor and not a contractor, so his customer deducts the CIS and pays this to HMRC.

As a sub-contractor he does not register for CIS.

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Replying to Matrix:
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By jcace
17th Apr 2019 09:45

As a subcontractor he should ensure that he IS registered for CIS (especially if his trading status has changed), but he won't need to register and operate his own PAYE/CIS scheme unless he is also paying subcontractors.

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By Clare_K
16th Apr 2019 21:28

So he shouldnt be taking 20% off his invoices when he invoices directly?

Unless the company he is working for sorts his CIS out for him?

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By doubletrouble
16th Apr 2019 21:52

It is down to the contractor to deduct the correct rate of CIS tax and submit to HMRC not the sub- contractor

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Replying to doubletrouble:
RLI
By lionofludesch
17th Apr 2019 08:05

doubletrouble wrote:

It is down to the contractor to deduct the correct rate of CIS tax and submit to HMRC not the sub- contractor

Mmmm, but it's not a bad idea to take control and calculate the deduction yourself.

Believe it or not, contractors make mistakes.

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By doubletrouble
17th Apr 2019 08:20

I agree, you should always know what the total of an Invoice will be but I got the impression from the OP that they seem to think that the sub-contractor has to send the tax deduction to HMRC

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Replying to doubletrouble:
RLI
By lionofludesch
17th Apr 2019 08:36

doubletrouble wrote:

I agree, you should always know what the total of an Invoice will be but I got the impression from the OP that they seem to think that the sub-contractor has to send the tax deduction to HMRC

In that case, I would strongly advise that she disengage until she has completed further training.

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By SteLacca
17th Apr 2019 08:49

If he's only just started he will be unverified, and so should have 30% deduction, not 20%

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