New CIS: major hiccup with agents' authorisations.

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Contrary to guidance received previously, agents who are already authorised to clients for PAYE will not now be automatically authorised to act for CIS purposes.

The news is slowly reaching tax agents that they are now expected to complete a separate authorisation. This is either by filing a paper FBI-2 agent authority form or else completing registration online. Whilst the latter option is generally more convenient, a software glitch means that it will not be possible if your tax office identification number starts with 0, and you will instead have to trust the post.

The need to re-authorise is blamed variously on:

  • Paye/CIS data not yet linked up

  • A decision from above

  • The provisions of the Data Protection Act!

The latter is most possibly the cause, which means that...

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23rd Apr 2007 14:29

Thank you for this item of news.

I have tried repeatedly to obtain on-line authorisation and could never understand why I failed every time.

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23rd Apr 2007 18:30

You can "file only"
Those advisers surprised by the announcement regarding the change of plan by HMRC on authorisation may now be very concerned about the first monthly returns due by 19 May.

For those using third party software, a file only facility is available, so if you have purchased third party software you will be able to file the first returns before your authorisation takes effect if needs be. This facility is not available for those wishing to use the free HMRC software CIS Online, as you must be authorised to be able to use it on your clients' behalf.

If you wish to do online verification you will need authority to act even when you are using third party software.

This may come as something of a relief to those just dicovering the problem! Members of the ICAEW Tax Faculty can see a statement the Faculty obtained from HMRC on this problem on the Faculty website.

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By barkeca
25th Apr 2007 18:26

CIS verification lists
As agent for a contractor client we are still awaiting a list of verified subcontractors. HMRC say they have sent them but unfortunately to our old office which we moved out of 18 months ago and we have lost track of how many times in writing and by phone we have told them. This is not the only client where we are struggling to get anyone at HMRC to take responsibility for making sure that changes of address etc do get actioned. Some clients get very frustrated for example when their PAYE details (eg payslip books)are continually going to their previous accountant.

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25th Apr 2007 18:46

The last straw...
is the CIS365 subcontractor verification details letters being sent out; the CIS helpline seems only vaguely aware of their existence, yet some contractors are convinced they need to see them as evidence before phoning to ask permission to engage a subbie.

These seem to be dated 1 April (!) and have not been received until 16 or later.

Why was there no clarification of this earlier? It's obviously another spoke being put in the system.

Whether the Revenue themselves want the system to collapse or whether it's just an accident is a moot point.

It really is time we all kicked back.

It saddens me deeply to sound like a disaffected revolutionary - I never was before.

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25th Apr 2007 19:04

CIS Fiasco
I really cannot believe that HMRC have only just come up with the Data Protection Act problem. The new CIS scheme was delayed for twelve months, to ensure everything went smothly. Yet twelve months later we still have the "0" bug in the system. The cost in time, paperwork and postage particularly for small practices, is now way beyond a joke.

A software system that does not recognise or allow or accept a leading "0" is quite clearly, totally useless. HMRC's view that paper FBI2's will take between 2 to 4 weeks to process, is extremely optimistic. I sent in three PAYE FBI2's over 6 months ago, and am still waiting for HMRC's authorisation. Needless to say two more of each (six in total) have been sent in the meantime, but all have been "lost in the post".

I have now been asked to fax them in, but alas the fax machine is either permanently engaged, blown up or the "plug has been pulled".

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By Anonymous
26th Apr 2007 15:15

Missing list of subcontractors on CIS web page
I have a client who has just enrolled to use CIS online. My understanding was that verified subcontractors would be listed automatically ready for filing the first month's return.

Having accessed the relevant page, there is no list of subcontractors available Does this mean that each one has to be set up by the user?

Has anyone else encountered this problem?

Thanks (0)