CIS Deductions - Offset or bankrupt

[recycledyorkie]

I have forgotten the precise numbers but the scenario is this.

Client Subbie provides a number of men to main contractor say £300 per day less 20% tax = £240. Pays men £250 per day less 20% tax which he cant keep. Net result -£10 per day until tax return submitted up to 12 months later.

Ignore question of employed/self-employed.

What am I missing or does he have to be Ltd Co to offset.

[CDavey9501@aol.com]

You can set-off tax if trade as a limited company only. If an individual you would have cash flow problem so would probably need to apply for gross payment status.