CIS Limited company take over

Recently taken over a new client, CIS, Limited Company. CIS Suffered Balance, how to treat?

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I have a CIS client (sub contractor) Limited Co, have recently taken over the accounts with a TB from previous accountant. The CIS suffered balance on the debtors account is £17k. How would you treat this balance in the new year?

 

Thank you

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paddle steamer
By DJKL
20th Nov 2019 10:16

https://www.gov.uk/guidance/claim-a-refund-of-construction-industry-sche...

What has company done about reclaiming it would be my first question ?

Can previous accountant advise state of play regarding repaymens would be my second question?

Is this a build up over time or just last year (which would be a fair bit of money for a one man band) would be my third question?

Determine the facts and the correct accounting treatment will follow the facts.

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Replying to DJKL:
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By hettydehaan
20th Nov 2019 13:41

Thank you for your reply

Previous accountant has reclaimed through Corporation Tax apparently but they have gone out of business so very difficult to get any advice from them. Yes it is a build up over time which has never been dealt with in the accounts.

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Replying to hettydehaan:
paddle steamer
By DJKL
20th Nov 2019 14:50

Well, are you sitting with a large CT Creditor in the b/fwd records, if previous agent has managed to have the sums set against CT liabilities that is what I would expect to see, if not then maybe nobody has yet asked HMRC for repayment (or the books are nonsense)

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