I have a client who I am doing his tax return for this year (2011-2012). He started working for himself as a subcontractor in September 2011. He has given me everything relevant to complete the tax return but no P60 for the tax year ending 2011 owing to doing no work between 6th April 2010 and April 5th 2012.
Please can someone advise me on the right action to take as it is my first tax return for a client with a CIS.
I always like to make sure previous years are ship-shape and it's best to obtain the last Tax Return submitted or last P45/P60 and fill in the gaps since then. Ask what was he living off for any periods where he was neither working for himself nor employed?
Having said that, you'll only need the 2011 P60 if you're dealing with the earlier year.
Presumably, you have filed the Form 64-8 with HMRC. That being the case phone them and ask them to confirm that there was no employments during 2011/12.
If the client tells you he wasn't employed in the year, why would you call HMRC to check that's really the case?
I always check that there are no losses carried forward etc, but that's a different issue.
Remember it's the client who has to sign the form, if he is lying and had an income he hasn't told you about that's his problem. If you have any money laundering concerns, deal with them accordingly, but the OP hasn't made any suggestion that this is an issue in this case.
whilst in theory I agree with you don't forget that the agent view project is still pending which would mean that if HMRC find that as an agent your clients have issues then you will be singled out to have yourself and (potentially) all of your other clients investigated as potential issues.
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
Yes, there is that to bear in mind, although my undertsanidng is that it is looking at things like late filings and payments (I could be wrong though as I haven't paid too much attention to it, given nothing is fuinalised yet and knowing HMRC it could be a long time unless it is!)
