Late registration for CIS

Contractor trying to put things right

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 A construction company X failed to register as CIS contractor.  This was noticed after our company Y invoiced them for construction work and was paid without tax deduction. X is now trying to put things right and needs a confirmation from Y that at Y paid all taxes X failed to deduct.

To keep HMRC happy is it advisable for Y to file CTSA return and pay tax for the affected period as soon as possible or is Y’s filing returns and paying taxes on time in the past sufficient?

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By lesley.barnes
20th Mar 2019 16:18

You need to speak to your accountant they should be able to go through their workings when they prepared you accounts and confirm that you've paid the Corporation Tax.

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By Novakova
24th Mar 2019 12:22

The relief is available where tax on the payments in question has been paid, or is likely to be paid, see HMRC CIS manual at CISR83050. If subcontractors have good compliance record, the contractor is OK and there is no need to rush to pay tax. But penalties still apply, up to £3000.

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