Pro Business - what a joke
Why are Governments and their Agencies so anti business?
My client is a flooring contractor who does a lot of sub-contract work and is always due a refund on CIS deductions offset. Limited Company with sole working director.
In the last couple of years he has doubled his turnover and in current period will probably do £400,000. He provides work for several sub contractors; is profitable and does not need to use his overdraft. Just the sort of enterprise you would think invaluable in today's climate.
I have urged him many times to apply for gross payment status but he refuses as he considers this a way of building up a little savings! A few years back he received a substantial refund.
Last year on P35 we applied for refund of £2,015. This year c. £3,500 potentially.
Received usual letter re provision of Payment Deduction Statements & bank statements, cross-referenced etc. I wrote on his behalf suggesting that the request was inordinate and unreasonable as to time and cost of complying. I also asked for summaries of all deductions made by main contractors for the year in question. I have previously obtained such summaries from HMRC.
Just received an "Adjudication" from a complaints manager insisting on full supporting documentation quoting various powers available to HMRC "As the information provided by your client's contractors does not match that in Box 28 of their 2010/11 form P35, sight of all PDS and Bank Statements is a necessity.
This is a bit rich following on from the MPs expenses scandal and the continuing waste and inefficiency in the public sector.
Furthermore :- "With regard to your request of the contractor information that HMRC holds for your client, we will be unable to supply this. HMRC are no longer obliged to provide these details to employers or their agents as it has been identified that this poses a security risk. As such it has been made exempt from the Freedom of Information Act. There are full details of this on the HMRC website."
As a lot of main contractors fail to provide deduction certificates the whole thing is a nonsense. How are we supposed to reconcile this when there could be timing etc differences? Incidentally we do his invoicing and itemise CIS to be deducted so we have a check on refund due.
HMRC could short-circuit whole system; tighten up monthly report procedure, ensure all deduction certificates are issued and determine, for each sub contractor, what their due amount is to be. Simples!
My questions are : What security risk?
Can anyone involved in Working Together comment on where this topic (of providing summaries of main contractors deductions)stands at present?
Sorry this is so long but I am seething!
- Could i ask for a bit of help please. 137 6
- Filling in my self assessment 630 14
- Should small companies be audited? 959 41
- Mileage claim restriction 348 3
- Self Assessment employed and self employed 81 1
- You know you're an accountant when... 1,378 41
- Overlap profit 563 15
- What does PITA mean? 362 9
- career 338 2
- Help required please 436 10
- Skype treating businesses as private consumers; no VAT invoices 451 1
- Help - ACCA uk practicing certification forms 210 3
- Vat to be Paid? 186 3
- CGT base cost 298 11
- A little bit of politics 423 5
- Ultimate Controlling Party Disclosure Questions 236 5
- RSU and double taxation 148 1
- Can i really not unreconcile a vat return in sage? 163 1
- Assets transferred at cost 209 5
- currency exchange rates across FY 104 1
- Sanzar 451
- Digital marketing focus group 374
- Sage troubleshooting for employee who has previously claimed SMP 333
- Continuity Agreement 288
- Are commercial mortgage cashbacks subject to Corporation Tax ? 270
- Buyback 262
- Sainsbury's mangement 257
- Avanti Accounts 240
- Entrepreneurs' relief (ER) for EMI shares 198
- Iris and Miicrosoft 365 171