In response to demand for house extensions etc. caused by covid-19 an enterprising brickie secured construction contracts and set up a company to carry out the work. Problems include:
1. He did not operate CIS for contractors issuing invoices. Some of these labour-only subcontractors went as far as issuing invoices for ‘quote creation’ or ‘consultancy’. He promised to try put things right in the future. What are the accountant’s obligations re this?
2. Where CIS was operated, he underreported payments to subcontractors and underpaid CIS tax. Subcontractors are paid weekly and in 2021/22 payments in week 5 were somehow overlooked. Is it OK to put right by adding underpayments to the next return?