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Limited Company really?

Is the Ltd Company trading?

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So i have a new Limited Company client.  However, it transpires that the sole director is engaged as a "subbie" and is paid with the 20% CIS deduction. The sole director believes this is the income of the Limited Company, however no invoices are issued by the company, the deductions are shown as that of the director "subbie" and the income is banked in a personal account.  The company has no further sources of income.

I am quite happy to report this as SE income, however im just wondering why previous accountants hadn't. Am i missing something here?

 

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15th Feb 2019 14:24

Key point is the UTR.

Whose UTR is shown on the deduction statements ? What we cheerfully used to refer to as the forms SC60.

That's where the tax will be and that's where HMRC will expect the income to be.

How long has this been going on ?

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By NH
to lionofludesch
19th Feb 2019 07:11

[quote=lionofludesch]

Key point is the UTR.

Whose UTR is shown on the deduction statements ? What we cheerfully used to refer to as the forms SC60.

SC60 theres a blast from the past, hand written with a carbon copy, used to be 25% deduction, happy days!

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to NH
19th Feb 2019 09:21

NH] <p>[quote=lionofludesch wrote:

Key point is the UTR.

Whose UTR is shown on the deduction statements ? What we cheerfully used to refer to as the forms SC60.

SC60 theres a blast from the past, hand written with a carbon copy, used to be 25% deduction, happy days!

You young people !!

It used to be 30%.

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16th Feb 2019 00:35

If the UTR is the Company, declare the income gross and then the Co can claim the CIS back after the tax year end. Ideally the client should have been taking a PAYE wage through the Company but too late for that historically but certainly advisable to put an optimal salary through PAYE going forward.

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