Long time without posting or contributing due to expansion but hoping its settled down now so will be back on here more often (but knew where to turn for help )
I have a client, recently taken over, who in April 2013 converted from Sole Trader to Ltd Company and a lot of his work falls within the construction industry so he is liable to CIS.
Since he became a ltd company all of his invoicing was from this but one of his customers has continued to deduct his CIS using his self-employed UTR not the company UTR.
My question is, should these deductions be reclaimed through the limited company payroll as an EPS or should they be reclaimed on his self-assessment return.
I am unsure which option to take because the deductions are 'linked' to his personal UTR but there is no income to declare them against
Are you his agent? If so I think I would ring HMRC and see if there is something they can do behind the scenes. Welcome back and well done on the business expansion!
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
Ended up having to phone CIS helpline who advised that the repayments can't be reclaimed because the contractor used the wrong UTR, so the contractor has to phone HMRC CIS and get it changed from sole trader UTR to Ltd Company UTR, then it can be reclaimed.
Hopefully my client has a good relationship with the contractor to get it changed.
Thats a bit ridiculous, not about the reclaim perhaps, but surely your customer can supply the evidence to get the payments moved over to the correct UTR. I would be tempted to write to HMRC saying you would like a response, back it up with all the evidence. Unless of course the contractor can get it changed but how would you know. I reckon they just want updated CIS returns then they can drop some fines in!
HMRC agggghhhhh
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
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