The CIS refunds that never arrive

The Practitioner
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My client always happy to be erring on the side of caution. His company wasn't strictly in the construction industry, although a lot of his consulting work involved building design and installations in factories, and probably involved working with other contractors within CIS. However, to keep his main customer - a foreign corporation - happy he registered as a CIS subcontractor many years ago and has allowed his customer to deduct CIS tax from all his invoices. At least the company tax bill was more than covered.

The snag is that what is actually paid is Income Tax, not Corporation Tax, and getting it back from HMRC each year has become more and more difficult. Unfortunately in a one-man company there just isn't enough PAYE to offset the CIS deductions so we have to claim a refund.

Couldn't they just offset the CIS overpayment against the Corporation Tax due? Apparently not as nine months is NOWHERE near long enough for them to make the offset!

So here we are trying to get the 2009/10 CIS refund out of HMRC. At the same time we are fending off the Collector who would really like the 2010 Corporation Tax but has been persuaded to await the CIS refund first. The repayment which we were told had been issued back in June hasn't appeared, so it would seem that HMRC have not been entirely truthful with us.

And when at last we get the refund there's going to be further ongoing trouble to get them to cancel the interest on the CT paid late!

* * *

Is it just me, or do my staff just do it to wind me up? What is it with people who don't peel off the whole of the foil seal on a jar of coffee? Why would you just make a spoon-size hole in the foil and leave a ragged edge to send coffee all over the place every time I use it? I think the summer heat is getting to me.

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10th Aug 2011 10:47

CIS refunds

CIS tax is not income tax or any other tax. It is an amount deducted from income to set against the tax payers tax liability, in the case of a ltd co. it is corp tax. Limited Companies are allowed to offset CIS tax deducted against CIS deductions they make, hence the box on P35. The self-eployed do not have that concession.

In the past the collector has phoned local office and if there is enough CIS to cover corp tax then all is well. Nowadays the collector cannot contact Longbenton (who now deal with all ltd co cis refunds) direct and they have been told not to offset anyway.

This is a major problem that needs sorting otherwise it will get very messy.

As for your coffee situation - don't you have a costa nearby. I personally peel off the foil and stick my nose in to have a good sniff.

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10th Aug 2011 15:12

acis refunds


I experience the problem on a grand scale

the revenue is getting more useless and unhelpful by the day


I have even referred the matter to my MP without result he seems more interested in being on committes which are televised

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