Just wondering what peoples thoughts would be on a client we have just picked up. The clients acts as a self employed ducting fitter. The client has used 2 subcontractors dating back to July 2010 and not informed HMRC. They have accumilated approx £3000 worth of CIS tax deducted from the subcontractors, and seemed oblivious to the fact this was not their money and that they may actually need to pay this to somebody!!
What would people suggest as a way of resolving this matter incurring as few penalties for the client as possible. I am concerned there may be penalties dating back to July 2010 for the client and each month after this which will run into several thousands?
Any advice greatly received.