CIS Statements - Caution

[aphilp]

In addition to good credit control to get payments from Contractors, it is now essential that you are as aggressive in pursuing CIS Statements on a monthly basis.

Two contractors - one which recruited us on the Tilers' Forum - did not issue CIS Statements or pay the tax deducted to HMRC in the last tax year.

Fortunately, my paperwork and email chasers to the Contractors was complete and after 8 months, we have now received a partial tax rebate from HMRC.

My accountant is now pursuing the rest of our monies, as HMRC have conceded that the Tax was deducted. My accountant has advised that HMRC are failing to give tax credit when CIS Statements are absent.

I thought it would be good to advise you that caution is imperative.

Best Wishes

Anne

 

[aphilp]

Good news as our Accountant has advised that we will now receive our full tax rebate, but it has taken almost a year.

Best Wishes

Anne

 

[steve187]

this just shows that the system is all wrong and not in the subbies best interest, there is no option other than to have the 20%, taken from your money owed, there it is gone to the tax man, but is it... , what happens if the contractors doesn't pay it, yes we all know we pay it again.. what a load of old .........'rubbish'

I have never been caught, but some contractors just don't know the rules and fail all the time to issue the cis certificate's.

rant over .....

 

[aphilp]

Steve

That is why it is important to send written requests for outstanding statements monthly. If I had not done so, we would not only have not got our refund, but we would have owed HMRC more money.

Best Wishes

Anne

 

[Sean Kelly]

I did quite a bit of work for one contractor and I never got a statement, although I asked for one. I did not want to tell the tax man for fear of not getting any more work off the contractor. The system is all wrong. Thanks Anne for highlighting the issue.

 

[aphilp]

Hi Sean

It is so important that HMRC are made aware of rogue contractors - just think how many other subcontractors have been ripped off in this way. My invoices, bank statements and written requests for CIS Deduction Statements were made available to HMRC, by our Accountant.

The HMRC waste no time in pursuing contractors for failing to submit CIS Statements of Deduction regularly and non payment of tax with severe financial penalties.

I have learned my lesson and pursue our monthly statements straight away after the 19th of every month. I also issue CIS statements to our men every month.

Best Wishes

Anne

 

[White Room]

When this first came out it seemed a trust thing having to rely on main contractors to submit your tax...I've had long waiting periods before I received any statement.