CIS deductions

[john meehan]

Sounds to me like the firm your working for know full well they are sailing close to the wind and are looking to reduce any tax liability should they be investigated by the TAX man and found wanting.

 

 

I've been thinking this myself. I'm not really privy to his turn over but I'm not behind the door. He should be doing a few things differently really.

[eggsarascal]

I can't help with CIS, but I was under investigation by the tax man a little while back, it's not a good place to be, the hassle I got was a nightmare.

 

It was proved that I'd done nothing wrong, but it was a load of stress.

[john meehan]

Yeah it doesn't sound a good place to be. Glad you got sorted

[AA Teccie (Paul)]

Sounds to me like the firm your working for know full well they are sailing close to the wind and are looking to reduce any tax liability should they be investigated by the TAX man and found wanting.

 

Possibly. My (anecdotal) understanding is its the NI contributions they look to recover as tax will have / should have been paid by the sub-contractor.

 

That said it all equals deductions and is all a 'form of' taxation anyway.

Paul

[benedmonds]

Sounds to me like the firm your working for know full well they are sailing close to the wind and are looking to reduce any tax liability should they be investigated by the TAX man and found wanting.

 

I take a different view... that may or may not be true.

 

The firm the OP is working for might think he is sailing close to the wind and not paying his taxes. The employer could (should) realise that he should be classed as an employee and therefore if HMRC inspected them, the HMRC would chase the employer for any unpaid tax..

[kevinjohnsonmbe]

I take a different view... that may or may not be true.

 

The firm the OP is working for might think he is sailing close to the wind and not paying his taxes. The employer could (should) realise that he should be classed as an employee and therefore if HMRC inspected them, the HMRC would chase the employer for any unpaid tax..

 

 

I can see your logic, but it still wouldn't be the appropriate course of action.

 

In the described circumstances, the main contractor makes CIS deductions from sub contractor. Sub contractor "cashes in" CIS credit notes on SATR. If HMRC came after main contractor, they'd still have to cough for (a) calling it SE when it appears not to be and (b) NI and CIS credits.

 

The employer's responsibility (in regard to a BF sub contractor) would be limited to proof of due diligence - for example, recording the (BF) sub contractors UTR and keeping appropriate records of gross payments. They are not responsible to HMRC for ensuring a (BF) sub contractor submits an accurate and timely SATR. That will always be the responsibility of the individual.

Edited July 21, 2017 by kevinjohnsonmbe

[benedmonds]

I can see your logic, but it still wouldn't be the appropriate course of action.

.

I never said it was the right way to do it...

[kevinjohnsonmbe]

I never said it was the right way to do it...

 

 

No, fair one!

 

I'm on year 7 of a HMRC battle which has gone through internal, First Tier and Upper Chamber and complaints processes and is still bumbling along with consistent and reliable HMRC ineptitude despite written apologies and compensatory payments for unacceptable (HMRC) administrative behaviours (cheques not been cashed!) And Im on the cusp of taking out an injunction against them.

 

It's just my experience, but they are not to be feared (so long as you're not on the fiddle) but rather to be treated as contemptible bullies.

[sloth]

No idea. We do very little work for construction companies

 

Been doing that since February last year now so just coming up on 18 months. We don't really do site work at all it's mainly domestic with a few council jobs thrown in.

 

It's a tricky one because I could do with out losing it but by losing the cis bit we would seriously struggling anyway.

 

Cheers mate

It's my understanding that cis only applies to construction industry related jobs, as has been said. So site clearance maybe, is about the only arb related activity. And even that's questionable, as if the site is cleared before it becomes a construction site... Well....

Have a look at the list of cis applicable activities online (Google is your friend here) and if you aren't involved in them then why is your employer looking to deduct payments from you? I think you need to ask them a few questions!

[kevinjohnsonmbe]

It's my understanding that cis only applies to construction industry related jobs, as has been said. So site clearance maybe, is about the only arb related activity. And even that's questionable, as if the site is cleared before it becomes a construction site... Well....

Have a look at the list of cis applicable activities online (Google is your friend here) and if you aren't involved in them then why is your employer looking to deduct payments from you? I think you need to ask them a few questions!

 

 

Unless prior to planning submission, Arb site clearance would be a CIS activity under "site preparation."

 

Gov.page = here:

 

https://www.gov.uk/what-is-the-construction-industry-scheme