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HMRC wont refund CIS - no reason given

Have you had this before?

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I'm spitting blood here... just had a row with HMRC and got no where.

Have never ever had this before. CIS client no problems no money laundering no anything really. Only worked for one CIS firm in year - certificates all OK from a company that has a good local reputation. I have other CIS clients who work for that firm.

Return was submitted a month ago. I rang HMRC today to chase refund and was told that I would have to ring back in exactly a months time. Either client could phone back or me.

When I asked how long it would take to get refund after that 4 weeks and was told another 2 weeks. So thats 6 weeks or rather 10 weeks in all.

Apparently its so the back office can do their checks. When I asked who they were checking -  me or the client they said they didnt know and this was something they did periodically.

I've never had this before in all my years in practice. They wouldnt give me a good reason, wouldnt pass me to anyone else and wouldnt give me a name or dept name to complain to. They said to write in. Client needs the money for his holidays.

So.. question... have you had this before? To whom can I complain (or rather... have an(other) row with :)!!

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By pauld
12th Jun 2019 17:53

I don't think there is a lot you can do about it. Happens periodically where they hold back a refund to do 'checks'.

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to pauld
13th Jun 2019 08:49

It used to be the case that the RSO (Repayment Security Officer) had to turn around those checks in 48 hours to avoid holding up repayments.

My, how times have changed.

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12th Jun 2019 17:54

Had this with one of my clients this year, same thing I phoned to ask after 2 weeks and was told I had to phone back in another 4 weeks as they were carrying out additional security checks, however it was all sorted just before the 4 weeks were up.

Not sure if you can complain as I thought that HMRC used to say it could take up to 12 weeks to refund any over payments, that might have changed though.

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12th Jun 2019 17:54

Had this with one of my clients this year, same thing I phoned to ask after 2 weeks and was told I had to phone back in another 4 weeks as they were carrying out additional security checks, however it was all sorted just before the 4 weeks were up.

Not sure if you can complain as I thought that HMRC used to say it could take up to 12 weeks to refund any over payments, that might have changed though.

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12th Jun 2019 18:02

Used to be very common, not so much nowadays. 7-8? years ago it took months to get many refunds. At that time it was so common I genuinely wondered if post crash there was an unwritten policy within HMRC to delay refunds.

Save your energy & don't bother complaining, it won't expedite the situation at all, just call back once a month to follow up.

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By Matrix
12th Jun 2019 18:22

Well, HMRC have not advised that they won’t refund the CIS. You need to manage your client’s expectations. There was never any guarantee he would receive the money in time for his holiday. Sadly we shouldn’t take responsibility or blame for HMRC red tape. Don’t spend any more time on this, it is outside your control.

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12th Jun 2019 18:34

Thx v much for your comments - I've calmed down now.

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12th Jun 2019 23:22

Slightly off topic... Having struck up a friendship with an ex HMRC employee, he revealed to me that the “back office” does not exist. Unfortunately, like most things at HMRC these days conversations are scripted. Next time you get told it’s with the “back office”, ask for the email address (does not exist), phone number (does not exist), or the postal addesss (does not exist)... funny sort of “office”.

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By GW
12th Jun 2019 23:47

Is it just my perception, or are there actually more security checks in the months where the tax take is lower?

https://assets.publishing.service.gov.uk/government/uploads/system/uploa...

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13th Jun 2019 09:32

I put a CIS claim in for a limited company and asked the money be transferred to pay Corp Tax and the balance to VAT. It still hasn't been done, I was told there was a big pile of applications for checking and not to contact them again until after the 29th July.

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13th Jun 2019 13:50

I have a similar case at the moment. Client is owed over £4k. He is suicidal about this and we know it will come through sometime ...... I hope so, as I have advanced him a £1k amount from my office bank account! Am I stupid?

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to essex accountant
13th Jun 2019 13:58

Yes, you will have raised your client's expectations and he will expect this for ever more.

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to essex accountant
13th Jun 2019 15:43

Woah. That's crazy, I don't think it would ever cross my mind to offer that.

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13th Jun 2019 15:33

Refunds in the construction industry are going to be looked into a lot more closely by HMRC especially when the reverse charge scheme kicks in.

Would imagine that you have been caught in an operational system refinement all ready for when the 1st October VAT changes kick off. There are going to be lots of small construction companies and self employed workmen/trades who are owed VAT!

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14th Jun 2019 00:17

Have had two instances this month where subbie returns submitted and refund not received. Online agent account showed both returns received several weeks earlier but no tax figures.

In both cases HMRC said the return hadn't been 'captured' properly their end and therefore rejected even though they showed as submitted.

The HMRC chappie I spoke to this morning (who did seem quite devil may care about working there) said he has seen this happen so many times this year, far more than normal. They have to refer it to get a box ticked but the last refund came through a week after I asked.

Don't know if you're having a similar problem but it does make you feel guilty as blaming HMRC does make it sound like you're making up an excuse because you forgot to file. Especially when they're saying 'all the other lads on the site have had theirs...'

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14th Jun 2019 18:50

To Seadog:
I've used Agent Acc Manager a couple of times and received a quick response (in my favour) and I threatened this with the HMRC person I spoke to.
Agent Acc managers only get involved at the end of a situation - ie when everything else had failed.
Spoke to client today and told him... not pleased.
So I've decided to ring in 2 weeks time and again in another 2 weeks until I get my own way.

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