My client. sole trader, is late with his 2018 tax return and because he was ill he hired people to help him with his work. The hires should have come under CIS but no CIS returns were made and no tax was deducted. Is there anything wrong with treating these payments as non business (i.e. personal costs), therefore increasing his profit and increasing his personal tax. In this way he would avoid the HMRC penalties for non submission of CIS returns and would ensure that all the tax due was actually paid.
Thanks for your thoughts on this