Offsetting CIS tax suffered against CT

Offsetting CIS tax suffered against CT

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Hello everyone,

Just wanted to as a question related to company's CIS tax suffered. If I want to offset it against CT, do I have to use the figure that was at the end of the tax year or can I use the figure that was at the end of accounting period, for example the end of September?

Thanks,

Mark

Replies (12)

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Euan's picture
By Euan MacLennan
22nd Oct 2014 15:39

Tax year

The refund is initially given against the PAYE liability for the tax year, so if you are claiming it against CT, it will be the net PAYE refund due for the tax year to the previous 5 April.

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Replying to Richard_Carey:
Euan's picture
By Euan MacLennan
23rd Oct 2014 10:01

Refer to my first comment

Euan MacLennan wrote:

Tax year

The refund is initially given against the PAYE liability for the tax year, so if you are claiming it against CT, it will be the net PAYE refund due for the tax year to the previous 5 April.

The amount is the CIS tax deducted from payments received in the tax year.

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By Exector
22nd Oct 2014 16:13

Additional guidance

You may also find this of interest:      http://www.hmrc.gov.uk/cis/claimrepayments.pdf

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By B and Co
23rd Oct 2014 09:14

How do you claim the refund if the client has not operated a PAYE scheme?

I have a limited company client who is a registered sub contractor and does not operate PAYE as there are no employees and Directors Remuneration is not beneficial due to other income for the director.

Will it be the same procedure but without providing a PAYE Ref?

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By Mark19
23rd Oct 2014 09:21

no tax incurred

What if there were no tax due at all? I mean no PAYE and no CIS tax incurred, because there is only one employee who is a director and he is getting minimum wage.

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By Exector
23rd Oct 2014 09:34

!

Try reading the above link....  write to the address given with your repayment claim.

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By Mark19
23rd Oct 2014 09:40

I read it, it does not say anything about offsetting tax suffered against CT and which amount should I use.

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Replying to Graeme G:
Euan's picture
By Euan MacLennan
23rd Oct 2014 09:49

Eh?

Mark19 wrote:

I read it, it does not say anything about offsetting tax suffered against CT and which amount should I use.

I quote from the link:

Setting off repayments against other HMRC liabilities

When you send HMRC your company’s claim you can ask them to set off any repayment due against your company’s other HMRC liabilities. HMRC can also include debts covered by a time to pay arrangement.
If you want the repayment set off against an outstanding Corporation Tax (CT) liability, HMRC need to know your CT Unique Tax Reference (UTR) and either the end date of the CT accounting period (AP) or your AP number. If you would like the repayment set off against VAT, please tell us your VAT registration number and the VAT return period.

Where an expected CIS repayment satisfies a CT or VAT debt in full and the company notifies the HMRC team dealing with the debt or the repayment claim, HMRC will stop recovery on the debt to allow the repayment to be processed and allocated to the outstanding debt.

Where to send repayment claims and any evidence HMRC has asked for:
PAYE Employer Office
Room BP4102
Benton Park View
NEWCASTLE UPON TYNE
NE98 1ZZ

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By Exector
23rd Oct 2014 09:47

!!

 

"Setting off repayments against other HMRC liabilities

When you send HMRC your company’s claim you can ask them to set off any repayment due against your company’s other HMRC liabilities. HMRC can also include debts covered by a time to pay arrangement.

If you want the repayment set off against an outstanding Corporation Tax (CT) liability, HMRC need to know your CT Unique Tax Reference (UTR) and either the end date of the CT accounting period (AP) or your AP number. "

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By Mark19
23rd Oct 2014 09:53

Thanks mate, but which amount can I use?

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By Mark19
23rd Oct 2014 10:07

I thought it might be different as there were no tax incurred. Thank you for your help!

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By Martin Dore1
16th Jun 2015 11:20

In year?

Hi

 

I have a client who is building up a large CIS credit (after deducting the CIS and PAYE they owe) for the current year.  HMRC won't allow gross payment because of a compliance issue about a year ago.  Is it possible to get HMRC to offset the CIS credit against normally quarterly VAT payments or does the client have to wait until the end of the tax year and offset against any liabilities due at that point?  Thanks

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