I was talking to a contractor the other day who asked a very valid question – ‘I have so many sub-contractors on my books; do I need to verify every one of them?’
That’s a very good point as it is only sub-contractors that have been recently recruited that need to be verified. You don’t need to verify if a sub-contractor has been paid since 6th April 2005 AND they provided you with either a CIS4(T), CIS4(P) or a tax certificate (CIS5 or CIS6). Apart from the CIS4(P) – the registration card – the other forms of evidence need to have an expiry date of at least April 2007. These sub-contractors should appear on the CD that HMRC sent out to you and it's worth checking that the details you hold do match, and that you have the correct tax status held against each sub-contractor's record.
As my friend commented, ‘This is going to be a time consuming process.’ There seems no doubt about that….
Kevin Misselbrook, customer services director
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