HMRC - CIS return not received - £100 penalty

Bean_Counter

Lifeisbutadream wrote: »

I know they want to control the Building Industry, but when are they going to realise that the only people who jump through their hoops are the honest ones who would pay their taxes anyway!

I would reckon it will get worse. Are you aware of HMRC plans to charge PAYE on some subbies?

http://www.cnplus.co.uk/news/business/chancellor-in-350m-paye-crackdown/5205463.article#

Lifeisbutadream

Bean_Counter wrote: »

I would reckon it will get worse. Are you aware of HMRC plans to charge PAYE on some subbies?

http://www.cnplus.co.uk/news/business/chancellor-in-350m-paye-crackdown/5205463.article#

Once again it will be a case of the honest getting punished and the cowboys going further underground.

Good one Mr Brown :rolleyes:

DCodd

Lifeisbutadream wrote: »

Once again it will be a case of the honest getting punished and the cowboys going further underground.

Good one Mr Brown :rolleyes:

We have insurance against being found to be "employing" subbies by CIS inspectors. Had an inspection and the insurance company supplied an ex HMRC inspector to sit in on the inspection. The two inspectors recognised the our man and immediately stated that "Employment status of sub-contract labour would not be challenged". £2k very well spent.:T

Edit - There are cases where judges have said that neither HMRC nor the Government should expect that subbies are actualy employees and that they are subbies until proven to be employees, so is there to be legislative change?

Lifeisbutadream

DCodd wrote: »

We have insurance against being found to be "employing" subbies by CIS inspectors. Had an inspection and the insurance company supplied an ex HMRC inspector to sit in on the inspection. The two inspectors recognised the our man and immediately stated that "Employment status of sub-contract labour would not be challenged". £2k very well spent.:T

Edit - There are cases where judges have said that neither HMRC nor the Government should expect that subbies are actualy employees and that they are subbies until proven to be employees, so is there to be legislative change?

We don't have £2K to spend on anything so that is out.

We have a subbie who works for us often - he has his own business as well and OH does work through his business too.

The way that we pay him (and he us) is by a percentage of profit from each job he works on - he doesnt supply materials as I do that as part of my position in our company (thats where I make my money!) - it works both ways for him - some jobs make a good profit whilst others make a loss - he may end up doing 20 hours on a job for £100, but thats the risk he takes - he also has to go back if there is a problem.

Under current regulations he is not classed as an employee but whether he would under new legislations remains to be seen. I would be very annopyed if he was and it would have to change the way we do everything.

DCodd

Lifeisbutadream wrote: »

We don't have £2K to spend on anything so that is out.

We have a subbie who works for us often - he has his own business as well and OH does work through his business too.

The way that we pay him (and he us) is by a percentage of profit from each job he works on - he doesnt supply materials as I do that as part of my position in our company (thats where I make my money!) - it works both ways for him - some jobs make a good profit whilst others make a loss - he may end up doing 20 hours on a job for £100, but thats the risk he takes - he also has to go back if there is a problem.

Under current regulations he is not classed as an employee but whether he would under new legislations remains to be seen. I would be very annopyed if he was and it would have to change the way we do everything.

I think HMRC, even under the new critera, would find it difficult to prove he was an employee as he risks financial loss on any job he does for you.

From what I have read, HMRC also want each subbie to provide heavy plant, well we are a £12m Company with 45 employees and our Clients supply all the heavy plant! The courts will just throw a status claim based on that, out.

Edit - Our subbies get the insurance for around £400.00, it depends on the size of your Business.

Lifeisbutadream

DCodd wrote: »

I think HMRC, even under the new critera, would find it difficult to prove he was an employee as he risks financial loss on any job he does for you.

From what I have read, HMRC also want each subbie to provide heavy plant, well we are a £12m Company with 45 employees and our Clients supply all the heavy plant! The courts will just throw a status claim based on that, out.

Edit - Our subbies get the insurance for around £400.00, it depends on the size of your Business.

I think they should spend some time trying to catch the real criminals - the ones who do everything for cash, hardly pay any tax and yet live in a 6 bedroom house and drive a Merc.

Its easier for them to chase the honest ones!

Lifeisbutadream

Right thats it I am furious now.

I have received another penalty this morning. When I rang they told me that it was because the second return was late!! (I filled in another return when the first one 'didnt arrive') - how could I send it any earlier than they asked for it????

Also I was told that the first return was found and that it did arrive on time!

Are they winding me up? I have had to write to the AGAIN now! are they just expecting me to pay up???? I am fcucking sick of the incompetent HMRC. They are so rude to me as well - do they not realise that because of people like me they actually have a job!!??? I feel like going compleetly underground - just working for cash and not complying with any of their stupid rules.

Rant over. God I am so mad.