Overpaid CIS deductions
We have 2 clients (C & H ) who have suffered CIS deductions. Both are currently in their second period of post incorporation trading. C maintained all their payroll records and paid over the PAYE due and took no credit for the CIS. We therefore have a Corporation Tax Liability and overpaid PAYE/NIC for 2009/2010 and 2010/2011. With H we maintained their payroll, however we were completely unaware of the CIS. They have overpaid PAYE/NIC which we wish to recover.
In both cases we wrote to the relevant districts for PAYE, now closed, and have been contacted by Longbenton in respect of C, a letter is awaited in the case of H. The letter dated 19 July from the PAYE Employers Office (are they the last PAYE Employer Office, all we will be left with is the Manadarins!) states the following:-
"Thank you for your fax of 28 May regarding offset of overpayments for 2009/2010 and 2010-2011 to Corporation Tax.
In order for me to review your claim I require further information. Please send me all(underlined) relevant payment and deduction statements (PDS) showing the limited company name for Tax Years 2009/2010 and 2010/2011 and a summary of these, month by month, with associated contractors names and addresses. Along with these I need crossreferenced copies of Limited Company bank statements supporting the PDS documents showing the Net Payments received, in order to substantiate the claim for CIS deductions as shown on the P35 Return.
What you should do now:
Complete the attached summary sheet in the following format:-
1) Enter amounts from each PDS onto the summary sheet unsing only one PDS per row
2) Write the corresponding amount and date it was paid into the bank on each row
3)Write the corresponding row number from the form directly onto each PDS
4)Write the corresponding row number next to the amount on each bank statement
5) Return the Summary Sheet with all the PDS and bank statements
Please note if Bank Statements are not cross referenced we will not be able to continue to review your case and the bank statements will be returned to you.
Mrs M Dembry
What is being said is that there is no trust on the part of HMRC in the public. Yes we used to submit CIS documents to HMRC to obtain offset. The part that is an insult is that appertaining to the bank statements. This is a primary record document and to request same is tantamount to an aspect inquiry inquiry under s9a without proper notificatiuon.
We have been advised by a remote operative, so far removed from the actual issuing office that they are incapable of comment only being a message transfer service, that the system has been instigated by the Accounts Office to simplify proceedures. I asked for the statute under which this was granted, that was obviously couched by myself in Ancient Greek because it was not understood. Surely it must be approved. I have searched the HMRC site CISR76020 and CISR73010 of the manuals hint at matters.
Let us look at the possible frauds:-
1) Income not in company- why then claim to offset against CT?
2) Contractor does not exist- would not a P60 suffice?
The whole matter has angered me- are we to subsidise HMRC, who will pay our fees
In France they would march down the streets, if we did here the Whitehall mandarins would laugh at us!
Has anyone else had this letter?