Gross payment subcontractor

Should he appear on client's CIS return?

Didn't find your answer?

Client has just engaged gross payment subcontractor, who is VAT registered. I have verified him and that's how I know he's gross payment. Up to 30 Sep this year, do I have to show payments to him on client's CIS return, as no deductions are being made? I assume I will have to show payments after 1 Oct on the return as the VAT reverse charge kicks in then.
HMRC website clear as mud.

Replies (2)

Please login or register to join the discussion.

Me
By John Charman
07th May 2019 22:34

Hi there,

Yes you do need to include gross payment subcontractors on the return.

Whether they are vat registered or not should not make a difference because the VAT element should not be entered on the monthly return. Therefore from 1st October your entries on the monthly returns should be no different.

Thanks (1)
Replying to John Charman:
By Moonbeam
08th May 2019 08:56

Thank you John.

Thanks (0)