Ltd Co 30% CIS deductions
JodieR
Registered Posts: 1,002 Beyond epic contributor 🧙♂️
I've included the amount of CIS deducted (at 30%) from my client's sales invoice in box 30 on his P35 but I can't see that being enough for HMRC to verify the amount as correct - does anyone know how I let them know the reference numbers on the CIS voucher from the customer?
0
Comments
-
You shouldn't need to as the contractor will have sent in a monthly report with that information on that this should be allocated directly to your client's tax account - in theory.0
-
You need to write to HMRC to request the refund. You then need to wait about three months before contacting the CIS helpline to enquire about the refund who will then email the back office in Newcastle (as they dont have a phone number) who will then call you back in 5 working days (if your lucky). They will then inform you that they will write to you. A few weeks later you will receive a letter stating that you must cross reference all PDS to bank statements and list the deductions in a schedule, failure to cross reference to bank statements (doing their job for them) will lead to them returning your claim.
By this time CT will be due but your client will be waiting on their refund to afford to pay their CT, you will contact CT to inform them of the refund due who will then tell you thats a different department and not their problem. Next you will receive a letter from CT demanding payment or legal proceedings will commence. Eventually you will convince them to hold of any action while the refund is processed. After a few more months of chasing the refund you will receive a letter telling you the refund has been agreed but you have been selected for security checks which holds up the refund a few more weeks for no apparent reason. Eventually you receive the refund, pay the CT plus interest and then have to write to CT to recover interest charged.
All this work will be free as your client will be fed up of waiting on the refund and HMRC refuse to acknowledge you are doing their job for them.
But remember tax doesnt have to be taxing
Rant over and good luck0 -
Unfortunately that has been my experience too! Although I did get the CIS office to agree to offset the CT for us which saved it coming back and then having to clear before going out again!! And because the CT office was kept informed they didn't levy penalties or interest on the late CT payment.
Small light at the end of a very long tunnel!!0 -
You need to write to HMRC to request the refund. You then need to wait about three months before contacting the CIS helpline to enquire about the refund who will then email the back office in Newcastle (as they dont have a phone number) who will then call you back in 5 working days (if your lucky). They will then inform you that they will write to you. A few weeks later you will receive a letter stating that you must cross reference all PDS to bank statements and list the deductions in a schedule, failure to cross reference to bank statements (doing their job for them) will lead to them returning your claim.
By this time CT will be due but your client will be waiting on their refund to afford to pay their CT, you will contact CT to inform them of the refund due who will then tell you thats a different department and not their problem. Next you will receive a letter from CT demanding payment or legal proceedings will commence. Eventually you will convince them to hold of any action while the refund is processed. After a few more months of chasing the refund you will receive a letter telling you the refund has been agreed but you have been selected for security checks which holds up the refund a few more weeks for no apparent reason. Eventually you receive the refund, pay the CT plus interest and then have to write to CT to recover interest charged.
All this work will be free as your client will be fed up of waiting on the refund and HMRC refuse to acknowledge you are doing their job for them.
But remember tax doesnt have to be taxing
Rant over and good luck
LOL!!! You have to laugh or you just want to cry!0 -
If they have employees just deduct it off the next PAYE payment.0
-
You need to write to HMRC to request the refund. You then need to wait about three months before contacting the CIS helpline to enquire about the refund who will then email the back office in Newcastle (as they dont have a phone number) who will then call you back in 5 working days (if your lucky). They will then inform you that they will write to you. A few weeks later you will receive a letter stating that you must cross reference all PDS to bank statements and list the deductions in a schedule, failure to cross reference to bank statements (doing their job for them) will lead to them returning your claim.!
By this time CT will be due but your client will be waiting on their refund to afford to pay their CT, you will contact CT to inform them of the refund due who will then tell you thats a different department and not their problem. Next you will receive a letter from CT demanding payment or legal proceedings will commence. Eventually you will convince them to hold of any action while the refund is processed. After a few more months of chasing the refund you will receive a letter telling you the refund has been agreed but you have been selected for security checks which holds up the refund a few more weeks for no apparent reason. Eventually you receive the refund, pay the CT plus interest and then have to write to CT to recover interest charged.
All this work will be free as your client will be fed up of waiting on the refund and HMRC refuse to acknowledge you are doing their job for them.
But remember tax doesnt have to be taxing
Rant over and good luck
Really could not have put it better myself. So sad but so trueRegards,
Burg0 -
Agreed... I wrote a letter for a Ltd subbie only to be told they aren't registered!!!! Yet they are having 20% deductions not 30%.... I am not looking forward to seeing how long it takes me to resolve this one....!! CIS is such a learning curve for me.0
-
It is worth remembering that it is up to the contractor to verify the subbie and they are then told what percentage to take. If 20% is being taken, what are they doing with it if the subbie is not on the CIS subcontractor list?0
-
It is worth remembering that it is up to the contractor to verify the subbie and they are then told what percentage to take. If 20% is being taken, what are they doing with it if the subbie is not on the CIS subcontractor list?
I know! I'm guessing they are using the Ltd Co's previous sole trader subbie reference. I don't have any reason to believe the contractor is dodgy.0 -
I know! I'm guessing they are using the Ltd Co's previous sole trader subbie reference. I don't have any reason to believe the contractor is dodgy.
Monsoon
If they are using the previous ST UTR you are in for a fun time. Even if the work was invoiced by Ltd and paid into Ltd bank account, HMRC will argue it is ST income and should go on SA, therefore you need to ensure the contractor has and uses the correct UTR.0 -
Monsoon
If they are using the previous ST UTR you are in for a fun time. Even if the work was invoiced by Ltd and paid into Ltd bank account, HMRC will argue it is ST income and should go on SA, therefore you need to ensure the contractor has and uses the correct UTR.
I know What fun this is!0 -
looks like i'm in for a fun time with this!
Pamdill: Yes he does have employees but as one of them was off on paternity leave and then went on the sick for 4 months he was due a refund from HMRC before the CIS was even an issue
Luckily the amount isn't that large and the client is so laid back so i'm not stressing about it. the client now meets the conditions for registering to receive their payments gross (he wanted to wait for this before registering for CIS, hence the 30% deduction previously) and when i filled out the application form it asked if he'd been given any verification numbers by contractors so I've included it there and MAYBE that will be the confirmation they need to process the P35?? I have my overly-optimistic head on today!0
Categories
- All Categories
- 1.2K Books to buy and sell
- 2.3K General discussion
- 12.5K For AAT students
- 318 NEW! Qualifications 2022
- 161 General Qualifications 2022 discussion
- 11 AAT Level 2 Certificate in Accounting
- 56 AAT Level 3 Diploma in Accounting
- 87 AAT Level 4 Diploma in Professional Accounting
- 8.8K For accounting professionals
- 23 coronavirus (Covid-19)
- 272 VAT
- 92 Software
- 273 Tax
- 135 Bookkeeping
- 7.2K General accounting discussion
- 200 AAT member discussion
- 3.8K For everyone
- 38 AAT news and announcements
- 345 Feedback for AAT
- 2.8K Chat and off-topic discussion
- 582 Job postings
- 16 Who can benefit from AAT?
- 36 Where can AAT take me?
- 42 Getting started with AAT
- 26 Finding an AAT training provider
- 48 Distance learning and other ways to study AAT
- 25 Apprenticeships
- 66 AAT membership