Repayment held up?

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Difficulties with one of her own clients alerted Rebecca Benneyworth to potential problems with repayments. With help from Shirley Martin in our Working Together discussion group, she has pieced together a guide to some of the main sticking points.

I started a thread in the Working Together Discussion Group last month on repayments. I had applied for a repayment for a CIS client on his tax return submitted a while ago. He contacted me to say he hadn’t received payment, so I applied for the repayment online. Checking a little later I found that his account still showed an amount available for repayment, and this was starting to look a little like Groundhog Day!

I subsequently found that there had been a problem with online repayment requests which was f...

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About Rebecca Benneyworth

Rebecca Benneyworth profile image

Rebecca trained in London with Kidsons and, on qualifying, spent some time as Chief Accountant of a manufacturing company. She now has her own small practice in Gloucestershire that comprises of owner managed businesses and small companies.

She also lectures extensively for a range of professional bodies, accountancy firms, commercial organisations and the Inland Revenue. Demand has grown for Rebecca on the lecture circuit where she is well known for her refreshing, enthusiastic and entertaining presentation style as well as having a practical and down-to-earth approach to tax.


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By thacca
04th Dec 2010 10:52

Company P35 repayments

Getting HMRC to pay repayments due on P35's because of CIS deductions sufferred has been a night mare. P35's are due by 19th may. We have still not received repayments for three clients. No number of phonecalls or letters seems to be able to sort it out.


Going forward for 2011 we have a client who we expect to be due a repayment of £250k. Is there any mechanism for contacting HMRC in advance to try and get this case processed promptly next year.

Thanks (0)
06th Dec 2010 13:14

Repayment Security black hole

It's all very well for the working together group to state that they have changed the visibility of repayments subject to repayment security - however the real problem here is the secrecy involved.

The Repayment Security office in Bristol is a black hole into which repayments fall for reasons only known to HMRC. However, the cynic in me suggests that there is a fair correlation to the size of the repayment. While I am sure HMRC would deny this, the net effect of this 'black hole' looks from the outside to be nothing more than an attempt to improve HMRC's cashflow by retaining payments that have every right to be paid to the taxpayer.

While a small delay (say up to 10 working days), might be reasonable, the experience demonstrated on AccountingWeb is of delays taking weeks and months. Without any ability to contact the Repayment Security Office or to provide additional information that would resolve the matter, there is no transparency. Without transparency, there will always be a suspicion of ulterior motives.

I accept that repayment security is a necessary evil, but the way it operates at the moment is untenable.

Thanks (0)
06th Dec 2010 15:04

CIS refunds

Some clients are still waiting for 2008/09 repayments. We have asked, in cases where corporation tax is due, for a offset so that HMRC do not chase. Well wouldn't you believe it tax collectors aren't privy to refund information. Very convenient. We have also been told that technically CIS tax (with Ltd Co's this is Income tax) cannot be offset against corporation tax. However CIS was set up to deduct tax towards the tax liability of the entity whatever you call it.

I must admit that most SA refunds do come through fairly quickly. If they don't then you go on the "magic roundabout".

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08th Dec 2010 09:20


"the net effect of this 'black hole' looks from the outside to be nothing more than an attempt to improve HMRC's cashflow by retaining payments that have every right to be paid to the taxpayer."

Based upon the repeated hints of Debt Management Unit staff, I came to that conclusion in 2005. But is it from pressure at the Treasury? I seem to recall similar problems with Agricultural subsidies to farmers, always endless excuses but the problems always led to a "black hole" or "blockage" at the Treasury.

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