The past year I have been working/ sub contracting to a small electrical firm that just sends me wages through the bank ( no payslip) and I haven’t sent invoices, and I have been getting paid with a 20% deduction but my boss/ contractor hasn’t been sending my deducted tax to HMRC or sending me CIS deduction statements, as it’s my first time at 21 working through CIS and doing my own tax I assumed I’d send off the amounts and they’d get the bill when they did their return but clearly that was not the case. I have spoken to my boss/ contractor and he’s happy to just pay me the amount of my return and we were hoping to leave HMRC out of it because as it says in the letter we don’t owe each other anything as I haven’t made over the 12570 personal allowance threshold anyway.
So can I sort it out with my boss and ignore the letter or should I reply to the letter explain the situation and get my boss to pay through HMRC