CIS and subcontracotrs

LA83

Hello,

I have recently used sub contractors prior to registering for CIS.

I only registered this week but have made payment to a subby deducting 20% earlier this month and the month before.

Will i get fined for these early payments if theyre are declared as sub contractor payments?

phill99

You won't get fined. But the HMRC may disallow those invoices from subcontractors that you haven't deducted CIS on. This means that those invoices are not classed as a legitimate business expense and therefore YOUR profit goes up and and YOUR tax increases.