HMRC tries to clarify CIS confusion

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In response to feedback from agents, HMRC has posted some further guidance on CIS authorisations on its website. It says that there has not been any change in policy around the support from New CIS for agents, and the problem seems to be that the rules are just plain confusing. The new guidance is as follows:

New CIS Agent Authorisation requirements

Agents can apply to act for a CIS client to conduct business:

  • in person, over the telephone or in writing by submitting a 64-8 authorisation

  • on-line for which there are two key steps
  1. registering and enrolling for the PAYE/CIS Online Service

  2. gaining appropriate authorisations from their client

64-8 Authorisations

Agents can demonstrate they have the authority to act for a client by submitting a 64-8. Any...

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By Anonymous
01st May 2007 09:29

I agree David,
We have here a classic communication problem, if only instructions had been issued to agents in a clear manner (i.e. non HMRC speak) in the first place.

Note from the radio this morning that the data registrar is looking for more powers to protect individuals' privacy from government depts. Wonder how this will square up against the master plan for HMRC?

Thanks (0)
30th Apr 2007 21:36

CIS Confusion
Quote "64-8 Authorisations
"Agents can demonstrate they have the authority to act for a client by submitting a 64-8."
"Any existing authorisation (before 6 April) for SA or CT business will also apply to CIS business, unless the client specifically states that they do not wish this agent to act on their behalf for CIS"

"Agents who were already registered and enrolled for the PAYE Online Service before 6 April have been automatically migrated to the new PAYE/CIS Online Service for Agents. This means that they do not need to register and enrol again"

This is simply not the case. It is totally incorrect. Existing authorisations are not recognised and perhaps the HMRC spokesperson who gave you this drivel should get his or her facts right. I got it from the horse's mouth. Perhaps it was a different horse.

10 FBI2's sent over 3 weeks ago. Nothing as yet.. Watch this space.

Thanks (0)
01st May 2007 09:04

Confusing but correct
I think the HMRC statement appears correct. It is possibly confusing that if you used the PAYE service you will be set up to use CIS service but not able to act for clients until they have given authority. Confusing maybe, but surely necessary. Subcontractors are not employees. The fact a client might have given authority to handle PAYE to a particular agent can in no way imply they have given similar authority for dealing with their subcontractors or doing their corporation tax for that matter ! As for authorisation - I am sure your software supplier can provide you with facitlities to file the authorisations electronically, possibly in a automated manner. (If not we can !) This must be a better approach than sending them in on paper where I suspect they will sit gathering dust in a post bag in some corner.

Thanks (0)
03rd May 2007 11:25

It is working !
What software are you using ?

David Forbes

Thanks (0)
03rd May 2007 13:29

The invisible software...
The free IR software, I mean, that has mysteriously vanished off the site!

So the returns have gone the same way, IMO.

Honestly! If this were Japan or honour counted for anything, the ritual suicide rate would have gone off the scale by now.


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04th May 2007 09:32

Agent authorisation
HMRC really need to take a long , hard look at themselves .

We want to on-line file our CIS client's monthly returns but cannot get authorisations on-line . The one we have been able to get on will not allow verification of new subcontractors !

We were told in a seminar that if agent's hold PAYE authority they will automatically get CIS authority when it came on-line - NOT SO .

The online authorisation codes are taking so long to reach the client they are 3 to 4 week in delay causing some to arrive AFTER the date they need to be input .

Manual FBI2's are just not appearing at all . As we have many Birmingham based clients with the infamous starting "0" to the area code we cannot online authorise . On phoning the Revenue we were told that they have a 4 to 6 week delay in dealing with these !!

Its like a banana republic run by the goon show .

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