Repayments for Ltd Companys

Thanks Marion.

within 15 days (not in peak periods ie 6/4 - 5/4). Yer right!

I still can't see why they cannot interim refund for the money that is not in dispute and why they can't send out copies of what they have got. It used to take me 5 mins on the phone to the local office to sort any problems out.

Thanks

It all sounds so sensible.  If only it were true.  A refund 2 weeks after 19 May. Ha ha ha.  I have JUST secured a refund for 2010/11 for one client after months of HMRC malingering....

Yep, me too. My client received his offset against CT for both 2009/10 & 2010/2011 overpaid CIS yesterday after months of badgering, pestering, begging and half a dozen letters. It's interesting to see their internal gumpf, but it doesn't change the fact that the system is appallingly slow and must be overhauled.

I also feel that it's nonsense that submitting a form P35 is not in itself a claim for a refund, but it has to be justified with an explanation of why the overpayment has arisen. Considering that CIS records are available to HMRC directly from the contractor, isnt it obvious to HMRC? This should not be necessary. And as for sending in the PDS & reconciling them to bank receipts, well don't get me started.

Making sub-contractors wait practically a year for overpaid deductions is deplorable and must be overhauled immediately.

It is nearly two years since some of the cis was deducted - 6 April 2010 - 5 April 2011.

 the P35 as a refund basis is that the P35 is for income tax. CIS tax is an amount taken off income to set against the tax liability of the entity. In the case of a ltd co it's corporation tax. The problem now is that you are allowed to offset CIS tax deducted from subbies against CIS tax that has been deducted (only for Ltd Co's) from the company, hence the need to put it on P35. Now if the figure on the P35 doesn't match what HMRC have got ........ you know the rest.

We still have a client with 07-08 CIS outstanding. Ludicrous.

@Taxhound agreed, i suppose it is two years for a M1 deduction from 2010/2011.

@Johnjenkins OH dear, I though my 2009/2010 was bad enough. Dreadful show by HMRC. Hope you & your client are successful soon.

annoying is that the collectors who collect CT are not allowed to contact longbenton to see if there is an offset and have been told just go for the CT that's outstanding. I have been told that there is a box somewhere in HMRC that can be ticked as an offset so that collectors aren't sent the debt. Trouble is no one seems to know where the box is and how to get it ticked.

The guidance on CIS repayments is on the HMRC website. HMRC did realise last year was not good enough and are aiming for improvements.

There is nothing to be done with the May 19 plus 2 weeks as all the P35s have to be received and collated. But, if a claim has been entered, then as per the guidance any other liability can be offset; so let the PAYE/CT/VAT people know that their money is in another section of HMRC.

There have been problems with requests for information, somewhat prematurely. However, if anyone can advise of timely repayments or other ongoing problems, then that will help.

I read the Working Together paper with interest when it was first posted and my experience this year has been no different than in the past regarding payments. I've not had one paid yet although for one lucky person there is light at the end of the tunnel with acknowledgement that his payment has been passed on for authorisation. 

I have just received my first letter of the year asking for more information. This consists of a request for copies of

1. payment & deduction statements along with a summary showing contractors names and addresses.

2. Copies of all invoices crossed referenced to the P&D statements.

3. Copies of Co bank statement cross referenced to the P&D statements and the invoices.

4. A preprinted summary form to fill in showing each invoice broken down to gross, deduction, net and date paid in bank. 

5. Each invoices has to be put in date order and then numbered 1,2,3 etc and this numbering convention used when cross referencing with bank & P&D statement.

To add insult the letter says that if a P&D statement can't be supplied invoices will only be accepted in exceptional circumstances. Luckily my client has a full set of statements but why do HMRC need the invoices as well when the P&D certificates match with the bank statements because they are going to disregard them anyway?

There isn't a mention of all this additional work in the working together document. Yes the matching with bank and invoices etc is done when preparing the accounts but all this additional manual numbering and matching is a waste of time and paper. 

As well as my time preparing all this paperwork which  I estimate a days work someone at HMRC has to check it all. There must be an easier and quicker way to do this, what's wrong with just  asking for the P&D statements in the first instance and only if it can't be resolved asking for more information that can be targeted at the specific area of concern? Instead we seem to be drowning in more and more paperwork, the photocopies are on a 100 sheets of paper printed double side. I dread taking clients on that are under CIS deduction.

I have a CIS client who has CIS tax deducted at source and has no offsett.I claimed the compamys CIS tax suffered on a P35 and sumitted it on May 12 2012 for the year enderd 5 April 2012.

On Septemeber 18 HMR&C asked for company bank statments!!! which I supplied under protest as my client had all the Contractor Payment Certificates and HMR&C used a "catch all " FA 2008 Sch 36 Para 1 & 3" to justify their request.

Bank statements were sent on October 16 2012 and when I telephoned to request payment the bank statements had not been looked at!!

I wrote to HMR&C informing them that this inneccessary delay was causing my client severe financial hardship...if they were owed £6k  for 5 months what would be their response...debt collectors at your door!!!

Today I received a letter informing me that if I wanted them to consider my clients case for "urgent repayment" then I must send copies of CCJs, overdrafts , bills overdue and final demand notices.

So...my client needs to have a ruined credit history and bankruptcy before the cretins at HMR&C will consider his repayment as urgent!!!!

Its his money!!

Can you believe this? I am honestly dumbfounded by their arrogance andincompetance.

On Monday my client will issue a CCJ against them...has anyone any ideas or had success with a CCJ....help!