CIS Tax Payments by contractor

[infidel]

Have recently starting doing some subbie work for a builder who takes 20% as per CIS scheme.
Just gone into a cold sweat wondering how can I be sure that money taken is given to tax man on my behalf?

I guess it'sopen to abuse because contractor could pay me 20% less & then not hand over the tax to HMCR.

Any thoughts/ advice please folks?
Is it possible to check with Tax Office that they have received payments?

 

[White Room]

A guy I work for on occasions gives me a sheet confirming tax deduction, I'm sure the resident tax adviser (Grumpygrouter) will give you a fuller answer.

 

[CJ]

Did the same not long ago.

Builder sent me a breakdown of tax to give to my accountant

 

[grumpygrouter]

Have recently starting doing some subbie work for a builder who takes 20% as per CIS scheme.
Just gone into a cold sweat wondering how can I be sure that money taken is given to tax man on my behalf?

I guess it'sopen to abuse because contractor could pay me 20% less & then not hand over the tax to HMCR.

Any thoughts/ advice please folks?
Is it possible to check with Tax Office that they have received payments?

The contractor is obliged to give you a written statetment of deduction on a monthly basis. I assume he is doing this. As such, this is your proof for tax return purposes. If he doesn't pay it over then it really is not your concern as you will have included the deduction in your tax calculation.

The Revenue would take appropriate action to recover the funds if they haven't been paid. Just make sure you have this certificate, and ensure it has the contractors Employers reference number on it.

Hopefully there is a sample certificate attached as a PDF. They can take many forms but these are the details thhat should be included.

 

[pjtiler]

Have recently starting doing some subbie work for a builder who takes 20% as per CIS scheme.
Just gone into a cold sweat wondering how can I be sure that money taken is given to tax man on my behalf?

I guess it'sopen to abuse because contractor could pay me 20% less & then not hand over the tax to HMCR.

Any thoughts/ advice please folks?
Is it possible to check with Tax Office that they have received payments?

have you registered with the inland revenue

 

[brian c]

as long as you have a utr you are fine .The sub contractor will more than likely pay you by cheque,so you have proof of employment and you should alsohave an invoice number for the work you did for them,so i know u are worried but all should be ok ,listen to guys like grumpy and dave and you wont go wrong.

 

[CBTC]

What Grumpy said. Plus in any case keep your records / accounts clear of who paid you what & when and for what, and what was deducted if it was - however straightforward the form of account may be.
The onus for deduction payments to the IR is on the contractors side, not yours - just show in your accounts that it was deducted.

 

[Spud]

when you have blokes work for you, you have to get their utr number then phone the cis help line and they tell you how much to deduct from their wages ,if they are registered it will be either gross payment or 20% if they are not registered they will be deducted 30% at the end of the month the contractor fills out a contractors monthly return and the tax he has deducted from you has to be paid by the 19th of the month .the contractor must provide you with a payslip and you must supply him with an invoice it would be crazy for him to mess around with you tax money as the fines from the inland revenue would be severe