I have a situation where a client is being assessed for CIS tax not deducted on accommodation charges paid for subcontractors, albeit that the client contractor makes the arrangements and has paid them direct. As this has arisen out of a PAYE inspection, it would be a contract settlement and there is no recourse for the contractor to subsequently recover the tax as it is not available to the subcontractors. Those who I have spoken to at HMRC take my point that this is undue enrichment on their part but are apparently powerless to give any form of concession. We have lodged claims for reg'n 9(5) employer relief and had them rejected. I spoke with the officer concerned and was advised to appeal as HMRC is undertaking a review in this area to give their officers further guidance. Apparently there are a lot of these cases at the moment, per HMRC!! Has anyone else come across this situation and have they been able to convince HMRC to "back off".