CT/CIS offset

CT/CIS offset

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Client has @£15k CT bill due 01/01/15, net CIS/PAYE refund currently £12k (mth 7) and likely to be @ £16k by month 9 - can we ask for offset?

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By User deleted
22nd Nov 2014 20:59

A set off is possible under s.130 FA/08 if the client company has tax payable and a refund due to it. 

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By User deleted
22nd Nov 2014 21:38

Except ...

... that s130 is an enforcement provision that permits HMRC to set refunds against outstanding tax debts. It is not often used as an offset mechanism for current tax debts, so CIS refunds will continue to be made in the normal way, viz to the extent that they cannot be set against PAYE liabilities they'll be repaid post 5 April.

But the question was "can we ask for offset?" Of course you can - whether HMRC will agree is another matter, and there is probably not much you can do to force the issue.

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By B and Co
24th Nov 2014 10:50

I have found this useful http://www.hmrc.gov.uk/cis/claimrepayments.pdf 

 

But from what I can tell you can only offset previous years CIS (to 5 April 2014) against CT. Current years overpayments can only be claimed against CT after 5 April 2015.

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