Information on refunds | AccountingWEB

Information on refunds

I have received the following press release/reply, dated 26/08/2011, from our Working Together Committee:


This is the update with regard to CIS refunds etc.

26/08/11 Considerable additional resource has been mobilised to deal with CIS repayments and as a result there should be a noticeable reduction in the time taken for the more straightforward cases.

Where it is necessary to request reconciliation because there is no evidence on our systems of some of the payments HMRC needs to ask for supporting evidence to show that the deductions were actually made.  In these circumstances we will ask for sight of the payment and deduction statements backed up by bank statements showing the payments being made.  If statements are cross referenced it helps to deal with checking the payments more quickly.  It is thus in the company's interests to help HMRC resolve issues around its deductions because the sooner we can be satisfied that the repayments are genuine, the sooner the repayment is made.

With regard to informal stand over requests where other liabilities are becoming due “where other liabilities arise DMB has been reminded of the undertaking given where CIS repayments have been delayed.  Should this continue to be a problem please pursue individual cases via the AAM route”. 



David C Moore | | Permalink

Had this problem for 2009 and 2010 repayments to a limited company. Also asked for off set corporation tax.

2009 off set made before all issues resolved, it was only one main contractor, who needed reconciling, same contractor for 2010.(amount in question less than £20) In 2010 off set to corporation tax was not made till amount agreed. So late corp'n tax payment including interest. At first appeal failed as reliance on refund should not stop you paying CT was Ct office attitude? Even though Total refund is some £7000 more than CT? All documents hand delivered, still lost internally. Nightmare. This year agreed amount with CIS helpline, confirmed with accounts office the amount credited and promised repayment by May. No direct line into new Newcastle office (not even for AAM) Took AAM route 1st week in July (She had to internal e mail them) refund arrived 9th July. Assume that if everyone took this route then we would still be down to the massive delays?

For everyone information 2010 took 11 months and 3 days to sort out with refund finally 2 days into new tax year. 

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johnjenkins | | Permalink

As CIS tax is tax deducted from income to set against the tax liability of the tax payer, perhaps the special commissioners might be interested. All tax payers are supposed to be treated in the same manner with regard to same circumstances. This practice with Ltd co's and CIS clearly doesn't.

Prediction for 2012. It will be even harder for refunds to be released or offset.


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johnjenkins | | Permalink

If HMRC had the common sense to send out an annual print out of CIS deductions or allow agents a viewing area, all these little problems would be easily solved, but, of course that would speed up refunds wouldn't it??????????

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