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taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
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Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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Could have a little advice please? I am a freelance site manager, cis registered.

Resolved Question:

Hi.
Could have a little advice please?
I am a freelance site manager, cis registered.
A contractor I did work for back in 2010-2012 has had a cis investigation recently by hrmc.
To cut a long story short they have not deducted the correct amount from my invoices and they have had to pay the shortfall, the contractor are now demanding I pay the money £3700 back to them.
Am I legally responsible to pay it back? As the mistake was theirs.
Kind Regards.
Anthony Jepson.
Submitted: 1 year ago.
Category: Tax
Expert:  taxadvisor.uk replied 1 year ago.
Thank you for your question.Please confirm my understanding of the situation -When you filed your SA tax return for 2010-11 and 2011-12, I presume you reported the correct gross amount as income and let HMRC calculate your tax liability based on it. Furthermore you showed tax deducted by the contractor as tax deducted on your tax return. Many thanks
Customer: replied 1 year ago.
Yes I did,
Expert:  taxadvisor.uk replied 1 year ago.
Thank you for your reply. Based on above confirmation of my understanding, any under deducted tax would have been put right by you as far as HMRC is concerned as your tax was calculated on correct gross income less expenses and you were given allowance for tax deducted at source (as deducted by the contractor). It is likely contractor had to suffer some surcharge for underpayment of tax etc. You are accountable to HMRC for your tax liability. It appears you are okay there otherwise HMR would be knocking your doors by now. In my considered view you are not responsible to pay any sum to the contractor. I hope this is helpful and answers your question.If you have any other questions, please ask mebefore you rate my service – I’ll be happy to respond.
Customer: replied 1 year ago.
Thank you very much,just as I thought!! I think I need to get a solicitor to look into it for my peace of mind
Expert:  taxadvisor.uk replied 1 year ago.
Thank you for your reply. Has the contractor forwarded you calculations and/or correspondence from HMRC .. If so, you would want to show it to your solicitor. I hope this is helpful and answers your question.If there are no more issues I will appreciate if you would kindly rate/accept the service Iprovided to ensure I get credited for it by Just Answer.
Customer: replied 1 year ago.
He has forwarded me calculations of my cis shortfall but no copies of correspondence from hmrc. I believe there are a number of his subcontractors in the same boat as me.
Expert:  taxadvisor.uk replied 1 year ago.
Thank you for your reply. As I mentioned in previous posting, you would have squared with HMRC any shortfall of tax as yoor tax payment to/repayment from HMRC would take into account tax deducted by your contractor.A legal opinion by your solicitor would be helpful. I hope this is helpful and answers your question.I will appreciate if you would kindly rate/accept the service I provided to ensure I get credited for it by Just Answer.
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Expert:  taxadvisor.uk replied 1 year ago.
I thank you for accepting my answer. Best wishes.
Expert:  taxadvisor.uk replied 1 year ago.
Your reward of a generous bonus is greatly appreciated.

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