For those with CIS subbies..

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deanshepherd
deanshepherd Registered Posts: 1,809 Beyond epic contributor 🧙‍♂️
in General accounting discussion
I have a subbie who appears to be having his deductions transferred to his SA account.

On his SA record they appear to be payments made for tax dated 19th May, 19th June and 19th July this year. We only noticed when HMRC refunded these amounts in full as there was nothing due on his account.

Obviously the client has already spent the cash! To be fair, he did call HMRC and get them to double check that the refund was definitely due, which of course the call centre operative confirmed.

I know lots of you deal with subbies - anyone experienced this one yet?

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  • burg
    burg Registered, Moderator Posts: 1,441 mod
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    Very strange...

    I have just checked some SOA's online but can't see any having this done. None have mentioned it to me either.

    Be interesting to see if others have experienced this and if it's likely that it is going to be a common practice going forward.
    Regards,

    Burg
  • T.C.
    T.C. Registered, Tutor Posts: 1,448 Beyond epic contributor 🧙‍♂️
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    No, but could this not have happened if he sent payments by direct bank transfer and used the wrong account, ie his self-assessment number instead of his PAYE number? They would look similar on a bank website!
  • deanshepherd
    deanshepherd Registered Posts: 1,809 Beyond epic contributor 🧙‍♂️
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    That's a possibility but he is the sub-contractor not the contractor so it would not have been him making the payments.

    I'll have to get my client to ask his main contractor if he is receiving demands for non-payment of the CIS deductions.

    The plot thickens!
  • Julia Crouch
    Julia Crouch Registered Posts: 68 Regular contributor ⭐
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    deanshepherd wrote: »
    On his SA record they appear to be payments made for tax dated 19th May, 19th June and 19th July this year. We only noticed when HMRC refunded these amounts in full as there was nothing due on his account.

    If the refunds were made automatically without a request to repay then that as well would be pretty unusual in my books.

    Another idea, Are they all for the same amount? If so perhaps HMR&C business support have incorrectly posted someone elses monthly DDR payments for outstanding tax to your clients UTR account. CIS deductions are not normally the same for three consecutive months.
  • deanshepherd
    deanshepherd Registered Posts: 1,809 Beyond epic contributor 🧙‍♂️
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    I see HMRC make refunds quite regularly when they are not due - it is only when we want the refund that they seem to have a problem!

    The monthly amounts are all different but roughly what his normal CIS deductions are. I am still awaiting 'payslips' to see if they do tie up exactly but I would wager a small bet that they do.

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