CIS Tax payments

JoBo Registered Posts: 16 Dedicated contributor 🌟 🐵 🌟
My OH used to soley work using his CIS card untill about 5 years ago when he set up on his own. He continues to do some work using his CIS card and so paying some tax as he goes along.
He has never before made the tax payments that you make during the year. If i remember rightly end of jan for current year then july for previous yr then end of jan when tax return completed? Please correct me if that is wrong.
For the first time this year hmrc have said he must make these payments, however he has done a lot of work using his CIS card last year, and so already paid tax.
He paid the 1st payment in advance this year but they are now saying he should have paid in July another payment. This is going to leave him with a huge payment owed back to him.
In a perfect world we could just send his return in now and sort it all out in one go, unfortunatly its not ready and is going to take at least another 2/3 weeks before its ready.
So if he calls hrmc, can they cancel the recent payment they want on the basis of all the CIS payments he has made already or not?
Hope that makes sense.


  • JodieR
    JodieR Registered Posts: 1,002
    Payments on account have to be made if less than 80% of the tax in the previous year was collected at source, which is why your client is now rquired to make them, however if you know that making them will result in an overpayment you can ask for them to be reduced accordingly. There's a form you can use, or you can do it online if you've registered to complete his returns online, or you/the client can do it over the phone. Just remember that if you reduce them too much there's interest payable on the shortfall.
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