First Previous - Page 1 of 1 - Next Last

Refund of CIS sufferred

  • Member PM.Dip
  • Practice Licence
  • 14 posts
  • # 116835

Hello

I have a limited company client which suffers more CIS than it deducts. 

The only employees are the directors who pay themselves below the NI/PAYE threshold so there is no PAYE to offset it against.

This means their CIS credit balance with HMRC is increasing month by month to the extent it is now causing a cash flow problem.

Conflicting advice from HMRC suggests 

a) they wait until the end of the current tax year ie after 05/04/19 and submit a claim for refund which could then take up to 40 days (this is what they have done for the 2017/18 tax year).

b) offset against their corporation tax which for their current financial year will not be due until 30/09/19

Neither of these will help their cash flow.

My question: has anyone come across a way of reclaiming excess CIS suffered midway in a tax/financial year?

Thank you

 

Peter R

  • Fellow PM.Dip
  • Practice Licence
  • 2 posts
  • # 116838

Peter R said:

Hello

I have a limited company client which suffers more CIS than it deducts. 

The only employees are the directors who pay themselves below the NI/PAYE threshold so there is no PAYE to offset it against.

This means their CIS credit balance with HMRC is increasing month by month to the extent it is now causing a cash flow problem.

Conflicting advice from HMRC suggests 

a) they wait until the end of the current tax year ie after 05/04/19 and submit a claim for refund which could then take up to 40 days (this is what they have done for the 2017/18 tax year).

b) offset against their corporation tax which for their current financial year will not be due until 30/09/19

Neither of these will help their cash flow.

My question: has anyone come across a way of reclaiming excess CIS suffered midway in a tax/financial year?

Thank you

 

Peter R


 

  • Fellow PM.Dip
  • Practice Licence
  • 2 posts
  • # 116839

Time to File said: I would suggest that your client applies for a gross certificate. You can complete the form on their behalf but they must sign it and send it to HMRC. The other option is for the client to contact the CIS helpline and complete the form by telephone.

 

Peter R said:

Hello

I have a limited company client which suffers more CIS than it deducts. 

The only employees are the directors who pay themselves below the NI/PAYE threshold so there is no PAYE to offset it against.

This means their CIS credit balance with HMRC is increasing month by month to the extent it is now causing a cash flow problem.

Conflicting advice from HMRC suggests 

a) they wait until the end of the current tax year ie after 05/04/19 and submit a claim for refund which could then take up to 40 days (this is what they have done for the 2017/18 tax year).

b) offset against their corporation tax which for their current financial year will not be due until 30/09/19

Neither of these will help their cash flow.

My question: has anyone come across a way of reclaiming excess CIS suffered midway in a tax/financial year?

Thank you

 

Peter R


 


 

  • Member PM.Dip
  • Practice Licence
  • 14 posts
  • # 116889

Thnakyou.

 

Yes my client did apply for gross status but were turned down pending submission of their first year's accounts.

 

Peter R

First Previous - Page 1 of 1 - Next Last
loading