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CIS Subcontractor Verification HMRC problem

CIS Subcontractor Verification

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Has anyone experienced all sub contractors being required to be verified and then HMRC systems repsonding with Unknown Subcontractor, which means a 30% deduction?

I have filed returns for this client who uses several subcontractors for many years.  For month ending 5th May 2016, the subconctrator paid most frequently over the past couple of years was the only one on the successful return.  This month 5th June all subcontractors required Verification and I had to either delete them or tick a box saying there was a contract in place.  The verification then failed to find the one subcontractor left and came up with Unknown, but I am sure they are still in business with no changes to their address or status.

I suspect another HMRC disaster, but I would appreciate knowing if anyone else has had the same issue.

Replies (11)

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By Jackie in Wiltshire
07th Jun 2016 12:50

I was asked this morning to re-verify all the subbies for one of my clients, despite the fact that I had already re-verified them all after 6th April (as required) and the 5th May return was submitted without a hitch. I did not, however, experience the "unknown" situation you did.

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By csmith8757
07th Jun 2016 16:31

It is a current known problem that their IT guys are working on. Guidance is only to verify new sub contractors.

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By rememberscarborough
08th Jun 2016 10:32

We've the same problem so have had to verify subbies verbally. However, CIS helpdesk have confirmed twice that they will have to be verified online when the IT issue has been sorted.

Given that we have 500+ subbies verified unticking every one except the new one to verify online is NOT an option....

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By 175alison
08th Jun 2016 18:52

I've done 4 CIS returns for clients this week and I've had the same message for them all, I'd say another HRMC disaster

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By rumandmonkeys
10th Jun 2016 14:34

10th June - problem still existing. Had to force the CIS return through as existing subbies were showing as 'Unknown.'

Just tried to verify a new subcontractor and still showing as 'unknown' despite producing both gross and higher verification numbers. FRUSTRATING!

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Replying to rumandmonkeys:
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By DMGbus
10th Jun 2016 15:02

I did a CIS online verification yesterday (9th June) and all seemed OK, result coming back "Standard Rate" (ie. 20% tax deduction as expected). A previously verified s/c was on the list (still) showing same correct "Standard Rate" tax deduction.

So in the case of the particular client that I was dealing with no problems.

One recent problem was an unexpected 30% tax deduction instruction, but this was down to taxpayer error - a Ltd Co verifcation was done using the directors UTR! Not surprising unrecognised and hence 30% stoppage instruction.

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joe
By Smokoe Joe
11th Jun 2016 14:10

I just re-verified them all, the frustrating bit is I can't produce a summary for each subbie individually showing verification number and rate

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By Flashman
12th Jun 2016 12:31

Don't you think that any other organisation would post a warning on their web site about this issue as soon as it became apparent together with the suggested way of dealing with submissions until it is fixed? Goodness knows how many telephone calls are being made by Agents and Contractors who are not aware of this problem. What a waste of time for all concerned (including HMRC). No joined up thinking here but not surprised. We keep being told that they are improving but have yet to see much evidence to that effect. Thanks cssmith8757 for posting guidance. Will try that and hope that there are no consequences!

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By mandymac
19th Jun 2016 10:56

Thanks for posting this, I had exactly the same problem with the 5th June return. I had to re-verify lots of guys, and as I use the hmrc system, it involved a lot of time. I had 2 people that I verified sometime ago, coming up as not known, took a few attempts to get them verified - they are showing as 30%. Totally ridiculous situation. Glad to know that it wasn't just me.

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By jilliek
23rd Aug 2016 10:09

I have experienced problems with verification of our subcontractors when speaking to the HMRC I was informed new rules came in and we have to verify sub-contractors every 2 years or if verified over the phone over 12 months! That is why most of my verification codes have disappeared. But my June submission has disappeared and I an currently appealing. Although speaking to contacts in the industry no one has seen any notification of this new verification procedure¬

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By MM Bookkeeping Services
23rd Aug 2016 11:56

Here is what I was told this morning when I had to phone HMRC yet again re verification:
Are clients sole traders? Yes.
Remove their trading name as we don't always get that info. Ok.
If they are still not verified then remove their NI number.
I asked him why it was on the online form if not required - no response.
However, I did all of this for the 2 subbies and one was verified, the other is still 'unmatched'.
The guy I spoke to today did not know that HMRC were having problems with this - despite me telling him when I phoned in June there was an automated message advising the problem and that it would be rectified in due course.
At the end of all this I was shattered as was my crystal ball as it had given up also!
Roll on MTD eh?

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