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Old accountant cock up

Hi

I have just been working on a new clients accounts and they have asked me to look into why they have not had any tax back for a number of years

To cut a long story..

Ltd company, under CIS

I have checked some of the P35's that were submitted and they are wrong, i then started looking at the accounts and they look in a right mess! I need to re-do accounts going back to August 2007. Is this a case of simply producing the accounts again, working out amended tax calculations and then re-submitting?

Not had any dealings with this before so would appreciate some advice.

Thanks

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20th Apr 2012 17:04

Ltd company under CIS

It may be that the company was treated as Gross for CIS and hence, not due to receive any refunds. Rather they should have been deducting the basic 20% from their subbies.

 

As for the accounts and p35s 'fraid you will have to go back and satisfy yourself as to their veracity or not as the case maybe

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By marine
23rd Apr 2012 13:56

Just going through P35's and the CIS deductions have been entered incorrectly so that explains why there is a discrepancy.

Going back to the accounts issue, can i just submit amended CT600 or is there another form i need to use when recalculating the Corporation Tax?

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23rd Apr 2012 14:19

Amended ct600 should be ok

Hello Marine

Yes, but you will need to provide additional info to explain discrepancy. Address letter to the Inspector dealing with the client.I would imagine that they will be happy somebody has done the work required.

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By Annetax
23rd Apr 2012 14:43

CT Returns

Assuming that the CT600's are within time for amending you can just submit a revised CT600. You could put a letter of explanation with as a PDF attachment if you feel it would be wise but it's not essential. If the returns are past amendment deadline you will need to do an Overpayment Relief Claim, but there is no specific form for this. However, there is a deadline of 4 years after the end of the accounting period in question to submit a claim.

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25th Apr 2012 11:17

who

Prepared the previous accounts ? client or an agent ?

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25th Apr 2012 11:18

sorry

clue was in the title ! doh

send them the bill !

 

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25th Apr 2012 12:11

are there payments in and out

subject to CIS, ie contractor and subcontractor

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25th Apr 2012 12:33

CT600?

Is the CT600 really relevant here?

My understanding is that CIS deducted from a Limited Company can only be reclaimed via the P35 Annual Return, for quite a few years now.

 

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25th Apr 2012 13:24

accounts a mess too !

cparker87 wrote:

Is the CT600 really relevant here?

My understanding is that CIS deducted from a Limited Company can only be reclaimed via the P35 Annual Return, for quite a few years now.

 

 

the OP indicated accounts are a mess too !

Sounds like an iceberg has been spotted ! Good luck !

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By cathyne
25th Apr 2012 14:44

Cis tax offset

If you are prepared to go round the house and trawl through clients records again, a claim can be made to offset cis tax suffered  v. corporation tax, after all PAYE/CIS liabilities have been settled

 

Obviously HMRC won't believe you so be prepared to gather up all the bank statements, CIS PDS 's, original invoices, cross reference them, fill out HMRC's form............ wait several months for HMRC to deliberate. And so on

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By mike01
25th Apr 2012 17:46

OLD ACCOUNTANT COCK UP

AnneTax is correct with her advice as regards amending the company accounts is concerned.

The CIS deduction issue is more of a problem because the Employer's PAYE Office is so far behind with its workload and  I have found a lot of the staff to be utterly incompetent.You will need to completely rework the CIS calculations and reconcile same to bankings etc but I would start by writing to HMRC at their office in Newry who deal with CIS matters to establish what they have on their system for your client company!This info will greatly assist you in your reconciliations.Obviously, you will need to ensure the appropriate authority is in place before you write.

Good luck.

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By TOC
26th Apr 2012 09:30

Had a case like this before.

Inform HMRC what has happened re the accounts, etc and that client wants you to prepare the correct figures. They will request you write to them explaining the situation. HMRC were strangely  helpful. Submitted revised returns, etc and everything was ok after that.

 

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