New client half CIS slips missing

New client CIS slips missing

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New client working as a subcontractor under CIS.

Doing SATR for 2018 (so late).

The client worked for one contractor for the whole year.

Her gross was approximately 3200 per month and so net after CIS 2,560.

I can see regular amounts of around 2,560 coming in to her bank account for 12 months. However she only has CIS certificates for 7 months. HMRC have kindly written to her and confirmed they only have records of 7 months of CIS from the contractor but no more. She cannot get anything else out of the contractor

In the absence of CIS certificates for 5 months and only 7 months confirmed by HMRC what should I put on the SATR and what should we claim for CIS deducted.

My instinct is to include the 7 months normally and claim for 7 months CIS; but for the reaining 5 months just report the net receipts as income and not account for the CIS as there is no supporting eveidence for the CIS

This ignores any consideration of her employment status which again is dubious.

Replies (4)

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RLI
By lionofludesch
12th Apr 2019 10:50

It all boils down to evidence.

If you can show an invoice for £3200 and a receipt for £2560, you're entitled to put it to HMRC that the tax was paid by your client.

CIS is HMRC's poorly run system and they need to take responsibility for it. They should approach the contractor for the other £640.

Of course, if you've buggerall evidence, you're in a weaker bargaining position and you probably need to point out to the client that her attitude to paperwork is expensive. The £640 is, of course, simply a bad debt.

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By bernard michael
12th Apr 2019 13:50

Dose the contractor confirm or deny the existence of CIS for the missing 5 months.

If he accepts it then I agree put in the gross and show the tax deducted

If he denies it then you have a different problem with several solutions

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By newman
20th Apr 2019 21:05

You don't say what work she did, maybe office work?

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By andy.partridge
20th Apr 2019 22:28

You should prepare the TR according to the facts. From your question it doesn’t appear that you have established them yet.

Don’t feel pressurised to hurry something through because it’s late. That’s not your fault. It might, though, be indicative of your client’s casual attitude.

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