HMRC CIS refund issue persists
The late repayment of Construction Industry Scheme (CIS) refunds relating to limited company clients by HMRC remains an issue for accountants, according to the ICPA’s Tony Margaritelli and other AccountingWEB members.
Margaritelli warned that refunds still aren’t being repaid as rapidly as they should be, despite assurances from working together groups that the issue wouldn’t arise in 2013.
“When I asked HMRC, their response was they were surprised it was happening. Last year, people were still receiving refunds in January, which is an absolute disgrace,” the ICPA chairman said.
"Apparently, it's the dreaded computer systems," Margaritelli added. "This time next year they'll be looking at real time initiatives and they'll say it shouldn't happen in 2014, but my answer would be let's wait and see. They did tell us at working together initiatives that we wouldn't have that issue this year."
When asked by AccountingWEB, the Revenue said that the delay in refunds was in part due to it being the “peak period” for receiving repayment claims following the end-of-year P35 deadline and neither confirmed nor denied it had anything to do with IT systems.
“We understand the impact of any delay in making repayments to customers. We are working hard to reduce our turnaround times,” a spokesperson said.
They added that all repayment claims up to and including 19 July had been cleared, except in cases where they needed to write to the employer for further information to progress.
The Revenue said it had ...