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The Joke of CIS Tax and Limited companies

Anyone else fed up to the back teeth with the pathetic method HMRC adopts in paying CIS tax suffered to limited companies?  Daft question, I'm sure there are.

Yet another client of ours waiting for THEIR money to arrive from HMRC for tax suffered, 3rd phone call to HMRC only to be told that they're currently dealing with post from the end of May - its the 16 August!  I'm sure pretty much every accountant had pulled their hair out over this, isn't it a disgrace that companies have to not only submit their P35 to reclaim tax suffered and write in complaining of 'hardship' that they have to then wait 4, 5, 6 months for their hard earned money to be send out.  Imagine it was the other way round?  HMRC would have debt officers at the door demanding payment. And why should they have to write in anyway?  Surely a P35 is sufficient?  Computer system identifies tax due; computer system agrees with this; computer system issues repayment; clients bank account credited within three days; happy customers.  

One rule for one etc, its about time something was done about this!


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I agree

I am sick of this.  I sent in a schedule detailing all of my client's CIS vouchers together with copies of all of the vouchers.  They returned this to me.  They won't accept it until I send them copies of the bank statement for the year cross referenced to this schedule.


This is going to take quite some time to put together as my client has several different contractors that he works for.

Surely the monthly reports made by the contractors should agree to the cis vouchers and they can check these here.

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Just a thought...............

................. and only a bit tongue in cheek.

If CD were still here he might advocate going to your local County Court and asking them to order the repayment to be made. What might not satisfy HMRC may well satisfy a CC Judge.

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Can i ask what number people are phoning regarding this please??


Got about 30 all waiting and none have yet reached first base ie no letter on any querying figures which im sure will happen on some.



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What HMRC said in April 2012... 

Good news = HMRC alert to the problem (based on 2010/11 bad experience for Ltd Co's who'd had CIS deductions deducted)

Bad news = Longbenton deals with these matters

Quote from HMRC in April 2012:




Working with representatives from accountancy professional bodies we have established a more consistent and robust system for dealing with claims for repayment from limited company subcontractors working within the construction industry.



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Cant wait to see this system in place as it isn't yet!



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"New system,"

bigmuggsy wrote:

Cant wait to see this system in place as it isn't yet!



In theory the new system IS in place (or supposed to be in place).

Problem is that the task in question is allocated to Longbenton office which rather too often seems to act as if it is a document repository rather than an office that actually carries out any productive processes or tasks in a timely manner (*).


(*) Today, 17th August 2012, I'm still waiting for a reply to a 12th June 2012 letter asking for a UTR.   NOT "rocket science" or a difficult task, nor time-consuming, (as client is already paying class 2 NIC) but Longbenton probably spent more time scanning and storing the letter dated 12th June 2012 than it would have taken to reply to the said letter.  "IDIOTS".

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Total Mess

Having just contacted HMRC on the employers helpline 0845 714 3143 , I have been informed that the refund in question would be made sometime around 9th November ! , They are only looking at refunds in excess of £500 once they have been contacted by telephone or in writing , just as well I didn't leave it any longer. I have been advised that next year I should make contact at the beginning of June and will then receive the repayment by the end of August.

Recently the client has received refunds on the following dates

Tax year 2009/10 received 19/8/10 , tax year 2010/11 31st October 2011 , this year estimate 9th November !  No improvement at all.

Does anyone believe a letter to our MP or a threat of legal action would be of any use ?, perhaps the easiest solution is to look at applying for gross payment status under CIS .


The thought of dealing with Longbenton has not cheered me up any either !



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