Am I going to get a fine? CIS

daniellemaire

Can anyone help me?  I'm pretty certain we will get a fine, but I'm worried about how much we are looking at.  Can anyone help me? 

My partner is an electrician, he subcontracts to one customer doing some one off work.  They have been deducting CIS since 25th September 2023, but we weren't aware he had to sign up to CIS.  

He probably invoices them around £400 a month so not too much, and they deduct the money. 

He is self employed and does tax returns so he hasn't lied about any of the money coming in, just wasn't aware of the process of CIS and assumed the accountant would sort it at the end of the financial year.  Now we know this isn't the case and so worried. 

He's registering tonight but we are so worried as everything online says £3k fine and this isn't the type of money we have.

We have been on universal credit although we've just come off it and he has been going to the self employed meetings and telling them about the CIS deductions and they also never mentioned it to him..... however it is mistake 100% 

Any ideas what fine we are looking at?  

Gvent#

Just declare the tax deducted you won't get a fine it's the employer that would be fined as you would be paying 30% tax if your aren't cis registered.

So I'd make sure you get a remittance for your invoices as that will cover you if the tax man asks. 

If not there is no evidence the tax could be paid

Gvent#

And just call them and register don't mention anything about payments 

It takes 2 secs to register 

daniellemaire

Gvent# said:

And just call them and register don't mention anything about payments 

It takes 2 secs to register 

Thank you, he's just registered online now, really hoping we don't get a fine - we definitely can't afford one!
Like I said he has been submitting everything correctly, just didn't know this was something that needed doing

mybestattempt

I think you may be confused about the penalties for registering late and failing to make correct CIS tax deductions and returns if you are a contractor.

If I understand correctly, your partner is subcontracting as has just registered as a subcontractor.

If so, the gross income invoiced and CIS tax deducted by the contractor should simply be included is his self employment income on his self assessment tax return. His accountant will be able to advise on this.