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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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.
Refer to my first comment
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.
Additional guidance
You may also find this of interest: http://www.hmrc.gov.uk/cis/claimrepayments.pdf
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?
Eh?
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
!!
"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. "
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