cis tax on company return

cis tax on company return

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Hi can someone please tell me how to record cis tax on the company return form ct600. The company has been stopped £3500 in cis tax by a contractor. I am the only empleyee so i have no paye tax or ni to off set as i have payed myself min wage and dividends. Is it proft, expense or somthing else thanks                                      

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By john.firstaccountancy
04th Feb 2012 02:04

I think the only answer is to obtain a refund through PAYE.

Be warned

You have to write to HMRC and request the repayment, even if it is clear on the P35

Even if you request a refund it can take many months for it to be actioned   

Good Luck   

 

 

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By marine
04th Feb 2012 09:22

You have to show all deductions on P35 and then as previously mentioned write to HMRC to offset CIS tax against Corporation Tax.

I still have many CIS tax refunds for 2010/2011 still outstanding, they are getting worse and worse. Even though they have copy deduction and payment statements and bank statements and i have continually chased by letter, phone and fax.

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By richgem2007
04th Feb 2012 10:04

Thanks for your replys so i ask for a refund on the companys p35  fight with HMRC for it. Ok got that so how do i put this on th CT600 return. as the money should be returned will go down as cash at bank and in hand ? 

thanks 

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By User deleted
04th Feb 2012 11:45

Nothing to do with CT600

As mentioned above, it's a refund of 'PAYE' - pure and simple. Your accounts should currently be recording the tax deducted as a balance sheet debtor.

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By DMGbus
04th Feb 2012 19:35

Claim against CT if P35 repay't delayed

If the "P35" overpayment takes too long (ie. still outstanding when Corporation Tax falls due for payment) then claim for the CIS tax overpaid to be offset against the CT due.  I believe that this is a RIGHT not a concession to be begged off HMRC...

Finance Act 2004 says it is first PAYE/NIC/CIS (relevant liabilities) andafter that Corporation Tax if any is due. Section 63 FA 2004 subsection 3says : (treatment of sums deducted :)(3) If the sub-contractor is a company—(a) a sum deducted under section 61 and paid to the Board is to be treated, inaccordance with regulations, as paid on account of any relevant liabilities of the subcontractor;(b) regulations must provide for the sum to be applied in discharging relevant liabilitiesof the year of assessment in which the deduction is made;(c) if the amount is more than sufficient to discharge the sub-contractor’s relevantliabilities, the excess may be treated, in accordance with the regulations, as beingcorporation tax paid in respect of the sub-contractor’s relevant profits; and(d) regulations must provide for the repayment to the sub-contractor of any amount notrequired for the purposes mentioned in paragraphs (b) and (c).

 

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By CASS
08th Feb 2012 12:24

CIS deductions

I have had exactly the same problem.

I have learnt that the best way is to set up a PAYE scheme even if there is only one director earning below the threshold ie £5700 and enter the amount of CIS deductions on the annual return

 

What ever happened to the concept of ONE system that could handle everything

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Replying to Duggimon:
Euan's picture
By Euan MacLennan
08th Feb 2012 14:12

Below £5,700?

CASS wrote:

I have learnt that the best way is to set up a PAYE scheme even if there is only one director earning below the threshold ie £5700 and enter the amount of CIS deductions on the annual return

Presumably, you mean the 2010/11 NI Earnings Threshold of £5,715, but you should have had a PAYE scheme in place for anyone paid over £5,044, the NI Lower Earnings Limit, as that is the trigger for preparing a "deductions sheet" and filing a form P14 at the end of the year to establish the director's right to a qualifying year for state benefits.  Incidentally, the current 2011/12 NI LEL is £5,304, so you must have a PAYE scheme if anyone is paid more than that (or if it is not their only employment or if they have a pension).

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By flurrymc
08th Feb 2012 15:42

IT(Construction Industry Scheme) regs 2005

Unfortunately there is a limit to the set off allowed under FA'04 s.63(3) - regulation 56 of the CIS regs. only allows R&C to retain an amount to discharge the CT liability if that liability arrose before the relevant payment is made under s.61.  It's all to do with the crown losing its preferential creditor status.

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