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claiming cis tax deduction as a limited company

new client who is in Gas safety services, setup a limited company and registered with CIS scheme. He has struck off company and is no longer trading, no accounts have been done for HMRC or his personal return.

he has suffered tax deduction to claim this back does he have to register as an employer? or is there another way to claim this back.

i would very much appreciate comments, thankyou inadvance for your reply


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I assume that it was the company that suffered the deduction?

If so, Mr Osborne will enjoy the benefit of the tax. The company should not have been struck off until it had received all monies due to it, plain and simple.

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Suggest give HMRC CIS dept a ring..they usually know their stuff and might (just might!) be kind. But as BKD says company should not have been struck off - but how many clients do that without asking first? We've all come across them.

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HMRC CIS helpline

hi thank you for the replies.

i contacted the help line and was told to submit the companies accounts/ return and the information would be matched with their records and therefore hmrc would be able to send a payment for tax deducted, it does'nt matter is company struck off.

i know there is a box to include on individuals tax return for cis deducted, but not sure about where to put in the companies return?

would i be right to prepare the accounts and company return and then to look or chase hmrc for tax refund?

suggestions appreciated. thankyou


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That sounds promising, but ....

... where is the cheque going to be sent and, more importantly, to whom is it going to be payable?

Next question - how much is the refund going to be, given that accounts and tax return could possibly show taxable profits? (Depending on extent of CIS work, the tax chargeable might well exceed the CIS tax due back.).

There isn't a box on the CT600 for recovery of CIS tax. Strictly, it should be claimed via form P35, although HMRC may offset it against outstanding CT. It's always possible that HMRC are prepared to take a pragmatic approach and dispense with some of the formalities (and write a cheque to the individual, for instance). It's equally possible that the person on the helpline didn't have a clue what he/she was talking about.

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I was told the same thing from HMRC - that if the directors of the struck off limited company sent a letter to HMRC to request a refund then they would sent a cheque in the name of one of the directors with the refund amount. However, once we did this HMRC said that the money can't be paid back as the entity of the company doesn't exist.  HMRC's stance is that the company doesn't exist (it is classed as 'bona vacantia') and the money doesn't belong to anyone so they won't pay back the money. 

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A thought...

Could you get the refund to go into your clients account.. then there is a bank account into which payment can be made, you can deduct your are intending to get paid for this arent you?! and then make the payment to whichever director etc etc

Just a thought..

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