CIS repayment Corporation Tax nightmare

Ltd Co Client was due a CIS refund of £6.9k for year 2011/12. Only £2.4k refunded, £4.5k reallocated to Corporation Tax. We received the cheque July 2013.

2012/13 CIS refund due of £4.8k. Corporation Tax return not submitted so expecting the will £4.8k back. Cheque received for £300.

So as you can imagine, client phoned me, got the cheque this weekend for £300 expecting £4.8k, not a happy bunny....

After 3 days of phone calls to Employer helpline, CIS helpline, Corporation tax office and payments helpline, it has become apparent that only the second £4.5k is showing on the Corporation Tax record. Finally found out that the CIS department, when reallocating the first repayment to CT, added an extra 1 to the UTR. So it hasn't been allocated anywhere.

I was told to call the Tax office in Cumbernauld, but there is no answer every time I ring it just rings and rings and rings.

CIS department says well we sent it to Corporation Tax, Corporation TAx says, well we haven't received it, where on earth do I go from here?

I wouldn't mind, but it is not even my or my clients error, THEY put the wrong reference on it, not me!!!


  • JodieR
    JodieR Registered Posts: 1,002
    That sounds terrible!! There used to be people at HMRC who were employed to help agents but I don't think they exist any more. Not that it's going to be of immediate help, but you (or your client) could try write to your local MP about it. I have just seen an apology from HMRC and reduction of penalties from £500 to £100 which one of my clients received after contacting her MP. Also, I think that if you've kept a note of the time you've spent sorting this out you can send an invoice to HMRC - they have been known to pay compensation for these things.
    But none of these are going to solve the issue I'm afraid... hope someone else can help you better.

  • burg
    burg Moderator, FMAAT, AAT Licensed Accountant Posts: 1,441
    You could try writing to your the CT office concerned explaining the problem. Failing that raise a complaint or request the help of your local MP.

  • Laura8192
    Laura8192 Registered Posts: 95 ? ? ?
    Finally got through on the number that kept ringing out, I was driving so I said please wait whilst I pull over, I've been trying to get through for ages please don't hang up! Luckily she didn't hang up.

    She was actually really helpful and has created a case and escalated it to a manager, but I have no case reference or phone number to call, and no expected time of resolution, just that my mobile number is on the case and they will call me. I'm going to give it until Friday and call again. She agreed that as CIS department put the wrong reference on they should really be chasing this up, but what can I do? They said I had to do it.

    I haven't been a MIP long, and was going to say is there any "agent customer services" type of department within HMRC, but sounds like there is not.

    I've probably spent over 2 hours on the phone since Monday trying to sort this, and as I work as well it is on my lunchbreak in my car, hardly ideal and I dread the phone bill!

    I'll let you know when I hear from them again....
    BIG WAL Registered Posts: 133 ? ? ?
    For future reference and for what it's worth, HMRC still have Agent Account Managers (see link below to register for service).

    You should be able to escalate this sort of problem to them. If no results from them take it up with whoever is your
    local representative on Working Together.
  • Laura8192
    Laura8192 Registered Posts: 95 ? ? ?
    Thank you for that, I have registered for the service. It was getting a bit ridiculous being passed from pillar to post over the past few days and still waiting for a call back. Once I have a phone number to call for AAM I will give them a ring and see if they can help at all. I do sometime find HMRC so hard to work with.....
  • Laura8192
    Laura8192 Registered Posts: 95 ? ? ?
    I contacted the AMM filling a form in online last weekend and someone phoned me back Monday morning! She phoned me yesterday for an update and thinks the issue will be resolved by the end of next week. I was actually quite impressed! It is so nice to have an actual persons name to email rather than a generic email box or being on hold for hours. I'll certainly be using AMM again if the normal channels don't resolve an issue. Thank you again Big Wal very helpful information!
  • JamesB
    JamesB Registered Posts: 51 ? ? ?
    Glad to hear the issue is being resolved Laura!

    Out of interest how do you go about setting of a CIS overpayment against Corp Tax?

    I have been asked this by a friend who is owed £3k in over-paid CIS (per P35) but also owes £4k corp tax so wants to off-set. Do you have to fill a form in or ring them up? Apparently my friend keeps getting pushed from pillar to post when he rang HMRC to ask (no surprises).
  • Laura8192
    Laura8192 Registered Posts: 95 ? ? ?
    Once you have submitted P35 you need to write to HMRC, they wont automatically issue a refund. Then in the letter ask them to offset against Corp Tax and provide the Corp Tax UTR. Address is

    PAYE Employer Office, Room BP4009
    Benton Park View
    NE98 1Z

    I wrote the letter but got my client to print on their letterhead and sign, as I'm not 100% sure but think it needs to come from the client not the agent.
  • JodieR
    JodieR Registered Posts: 1,002
    I've got a client where I submitted the P35 on 10/04/2013; wrote to HMRC on 03/05/2013, got an acknowledgement letter mid June to say they agreed to the refund and the client is still waiting for it now. £7k which they really need now. The whole system is crazy.
  • Laura8192
    Laura8192 Registered Posts: 95 ? ? ?
    Jodie I spoke to them about the 2012/13 refund in June (did the same as you, submitted P35 on time and wrote to HMRC straight away) and they said they 2012/13 refunds were on track to be issued in October.... we obviously got ours a bit early... but it was wrong!

    I still havent heard from the account manager though, and client hasnt received cheque so it is still an outstanding issue....
  • JodieR
    JodieR Registered Posts: 1,002
    'On Track' ?? which track is it they think they're on? not the one everyone was hoping for, clearly!
  • De6
    De6 Registered Posts: 9 Regular contributor ⭐ ? ⭐
    I've just emailed Lin Homer and complained about this.

    [email protected]

    I'm sick to death of the incompetencey of HMRC all they have to do is offset the PAYE against the Corporation tax a simple mathematical sum. I've already done the work so it couldn't be simpler for them.

    Lets all get complaining this is just not good enough.
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