Hi
My client started working in construciton industry six weeks ago and he aske me today to register him for self employed sub contractor - CIS which I done online today.
Today at the time of payment his contractor asked for his UTR which obviously he does not have. My question is?
How my client can get his payments after tax being deducted by contractor?
Thanks
Replies (8)
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I can't take anyone anonymous seriously now.
I'll have to assume that all these questions are asked in jest by Cheekychappy!
Assuming this is genuine, he will get paid but until the contractor can verify his details he will be subject to 30% tax as opposed to 20%.
It is only a payment on account so whatever tax is taken off will be the amount claimed against his actual liability for the year on his 2017 Tax Return.
Curious the your client does not have a UTR as everyone should have one. Has he just arrived in UK?
Curious the your client does not have a UTR as everyone should have one. Has he just arrived in UK?
Are you sure? A UTR tends only to be issued if there is a need for one, like a need to do a tax return, millions of individuals do not have a UTR.
Craig Preece's answer (15th Sep 2016 17:19) explains all that is necessary to answer the OP's question.
HMRC's CIS system says no matchingUTR = 30% tax deduction.
Hence highly recommended that a UTR is applied for uinless happy to suffer 30% rather than 20% deductions.