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Reallocation of CIS liabilities

Liabilities have been submitted using the wrong reference

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Long story short, client has 2 companies each with their own CIS only scheme (one company winding down and one starting up, a period of crossover between the two).

Unfortunately, the wrong CIS reference was entered in Newco's setup and several months of CIS liabilities were inadvertently submitted to the Oldco account at HMRC Towers. Newco paid all its liabilities so we're now in a position of matching liability in one and overpayment in the other. So I wrote and requested that the liailities be reallocated and that would be job done. Not too onerous, one would have thought.

HMRC have now replied and told me to submit "amended FPS/EPS" (that's verbatim, even they don't seem sure) for both schemes to correct.

Firstly, has anyone had this scenario and was this how it got sorted?

Secondly, payroll isn't really my thing but do CIS only schemes even have FPS / EPS submissions?

And finally, all this happened in the previous tax year so, if payroll amendment is the way to go, surely that means it must be done via an EYU?

Many thanks for any and all answers.

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By Paul Crowley
10th Feb 2021 17:48

CIS only schemes are rare
Do what they ask, much quicker than spending hours on phone
And they are of course correct. If you are reclaiming the system will have logic checks in it to make certain that you do not claim more tax than actually paid by contractors
Earlier year changes are perfectly normal

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