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CIS status
Thanks Andy, good idea, spoke to CIS helpline who referred me to the relevant link
http://www.hmrc.gov.uk/cis/business-payment-support.htm
"Business Payment Support Service and subcontractors’ gross payment status
At the Pre-Budget Report, HM Revenue & Customs (HMRC) announced a new Business Payment Support Service to help businesses having difficulty making payments to HMRC. A number of people have asked what effect entering into such an arrangement will have on subcontractors who are registered for gross payment status.
If you have come to HMRC to agree a Time To Pay (TTP) arrangement before the payment is due, then this will not affect your gross payment status. Even if you have entered into a TTP arrangement, you may still get a letter advising you that we have cancelled your gross payment status, as a result of our automated tests. If you receive such a letter, please appeal immediately as indicated in the letter and explain that you have a TTP agreement with us that you entered into before the due dates of the relevant payments. In most cases your gross status will be restored, unless there were other failure reasons unrelated to the payment in the TTP arrangement."
CIS nightmare
I have a client to whom I do his CIS return. We were advised that the returns should be sent to CIS centre at Liverpool. This we did and also attached to the return was a cheque for the amount due. The cheque cleared was paid by the bank the next day when before the CIS deadline. Mysteriously the CIS return has gone walkies. We reason with CIS to see sense but they refused. We stated is if the cheque sent with teh retun had been cashed therefore HMRC must have received the return - not buts. Persons at HMRC issues me with umpteenth fines for non compliance. How can this be or is it a case of HMRC loosing more records. People at HMRC (CIS Centre) is pretty economical with the truth claiming compliance. I asked them how this so when the cheque had already been cashed, especially when the cheque was attached to the retuned itself. Has HMRC lied through their teeth or just plain ignorant and stupid? Have I missed out something here?
like many of you
Like many of the readers of this article I have a client sent a £100 penalty for late filing. He was mortified, he filed online himself and couldn't believe HMRC's dictatorial attitude. No waiver, no refund just a pay up or else attitude.
Instalment payments
The TTQT review for CIS classes a failure as a "late" payment of Corporation Tax. Presumably (and it's a pretty big presumption) if a revised payment date has been agreed as part of an instalment plan then this becomes the due date in determining whether or not it is late.
Might be worth ringing the CIS Helpline just to check, unless someone else has already done it and knows the answer?
PENALTIES AND CIS
The Inland Revenue are offering taxpayers the opportunity to pay their PAYE, Corporation Tax and personal tax late, by arrangement and are widely advertising this policy. One client has gone so far as to suggest to me that in the light of the interest rates involved, I am actually failing in my duty to all clients with overdrafts if I fail to advise them that borrowing off HMG would be cheaper ......... not, in my opinion, the spirit of the thing. However.
I have a small builder client - a Limited Company - who cannot at present afford to pay the 31st March Corporation Tax bill and who intends to take up the Revenue's kind offer of delayed payments.
Does anyone know whether taking up the 'stage payment' offer will result in the withdrawal of the full CIS certificate, or whether it will prejudice the full certificate at a future renewal time ?
Disproportionate & unfair
"some of the current regimes can produce results which appear disproportionate and are perceived to be unfair"
We have to operate CIS and endeavour to be 'sqeaky clean' as loss of CIS status would seriously jeopardise our cashflow.
Last month, as is often the case, we filed a NIL return (no tax to pay), several days before the due date. We then received a notice of a £100 penalty for late filing. Upon appeal it was stated that our return was ENTERED on the system 1 day late. It is unclear whether this was due to postal delay or delay in data entry but even though no tax was due the penalty was levied nevertheless.
After some application of pressure the penalty has been "set to zero". I think this means that we have no fine but still get our licence endorsed - who knows. There is no method, apparently, of wiping the slate clean, even if the error was HMRC's (which it may well have been).
Internet filing might be the answer, but that has proved to have other problems in our experience.
One gets the impression that in the eyes of the Treasury everyone in construction (hence CIS) is a cowboy, or a crook, or both. Meanwhile, we just soldier on, trying not to be made part of the statistics!
CIS penalties
Ron, you can find the document here - http://www.tax.org.uk/showarticle.pl?id=7824&n=3793 - which is on the open part of the CIOT website. Not sure why it's not on HMRC's.
CIS MODERNISING PENALTIES
CAN ANYONE DIRECT ME TO THE RECENT (02/09) NEW DOCUMENT CONCERNING CHANGES TO THE PENALTY REGIME ?