need some help about tax

[Daveshadowman]

i have done some subbie work for some one invoiced them every month labour only less tax just found out they have not paid the tax .I have spoken to them they want to put it all in there books this month but some of it is before april do i just go striaght to the tax office and get them to sort it ?

 

[White Room]

Do you have an accountant who could help perhaps.....

 

[Rizzle from the Portizzle]

you cant invioce less tax you must invioce full amout including tax they then pay the tax if they dont you will have to pay the tax on your invoices you need to see accountant asp

 

[John Benton]

When you subby to a contractor and they pay your tax you give them your UTR (Unique Tax Reference, given to you from HMRC, ring and ask them for it). You invoice the contractor in full and they pay you, less tax. You will then have a credit for the amount of tax they have paid at the revenue. So when you come to do your accounts, and say for example you have a tax bill of £3000 and the revenue have £800 of credit from contractor(s), then you would be liable for £2200.

As said in the posts above an accountant would be worth speaking to if you don't already have one.

I had a problem a few years ago, did some work for a showroom, invoiced them, and they sent me a cheque minus all tax. All well and good, but they didn't send my tax to the Revenue. Oh no, they kept it. My records showed though my invoice total and what I got paid.

Because I could prove that the Revenue leave me alone and go after the showroom as they have my tax (Although the guy did do a runner to Spain owing £70k)

 

[Daveshadowman]

Sorry I did not make it clear the invoices where full amount , less tax= amount due I have a utr ( have had for ten years ) I do my own accounts and the bloke has my utr

 

[paul flight]

if they have deducted the tax they should give you a cert or statment which you can show the taxman . all my contractors give me a cert at the end of the mth showing total , amount paid and tax deducted, if they wont comply to this phone your tax office and tell then what has happened they will follow is up .

 

[Dan]

Refund all invoices, and let them put it through again with all the tax on, and use the new date for your own books, and let them pay the tax based on the new invoices date.

Not an account but I think that's what I'd do. Then just go off the invoice date rather than payment date. Which then makes it their problem moreso than yours - your books marry up.

 

[Pebbs]

Dave, I dont know how far these invoices go back, but if its more than 3 months then they are not making a quarterly declaration to the cis. Every three months, my accounts lady trots along and says your CIS is due and its going to be XXXXX...after I have passed out and had a dose of the smelling salts, I then see them collect the money on a direct debit. We send out the subbies tax certificates every 3 months because you lads seem to lose them if they are done every month.

Your way forward is this, if these invoices are for more than 3 months, you immediately ring the company and inform them you are ringing your tax office and informing them that you have received no tax certificates, and the name of the company concerned. The company concerned should then spring into action. And the reason is this, they might be on a CIS gross status, and if they lose that status, its like a kiss of death, because in turn the main contractor will withhold 20% on their invoices.

What goes around goes around.

Good luck, take no prisoners and get on that phone.

Let us know what happens.

Lynn

 

[DHTiling]

CIS was scrapped a few yrs back. You get a monthly/quarterly or yearly statement of deductions , no tax certificates anymore.

 

[Daveshadowman]

I have agian spoken to the company involed they have said i will recieve statement by tuesday next week so watch this space