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...Trust transfer plan; Italian imports
CIS adjustments
We received a notice from HMRC under TMA 1970 s 9A with regard to the 2012 tax return of a client who is a subcontractor. Various letters have gone back and forth with the result that the department want to adjust the income figure for the year to those shown on his contractors’ construction industry scheme (CIS) returns.
Similarly the amount claimed for subcontract labour would be as shown on the CIS returns that he has completed for the year. This ignores the profit and loss basis of computing the accounts and will virtually adjust them to an income and expenditure basis for the year.
As HMRC have previously dictated that the “income and expenditure” basis should no longer be used it would appear to be setting a dangerous precedent to agree to these adjustments.
Do any readers have experience of this and...
Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.
