After spending yet another ¾ of an hour trying to get through to right person at HMRC we were told that CIS over payments for the tax year 2013/14 would take up to 5 weeks to process by HMRC, even if the year-end was filed weeks before the deadline!!

How unfair is that?

Over payments occur when Contractors have CIS tax deducted at source and do not have enough PAYE and deductions made from subcontractors to off set the amount against the deductions suffered by themselves.

New 25 day repayment promise by HMRC

Several of our clients face this dilemma every year with no fair reclaim system in place they just have to wait the 5 weeks. Some of the amounts owed back can be staggering; one client is owed in excess of £64,000

Hopefully this will be the last the year we face this dilemma.

HMRC have released a statement in April 2014 stating things will change for the tax year 2014/15. HMRC have promised they will process the reclaim within 25 working days from the date they receive the notification of the over payment.

As you would expect, there are conditions;

  • A final RTI report must be submitted before the 19th May
  •  A claim must be made in writing to the PAYE Employer Office, stating the refundable amount, the reason why there has been an over payment, the tax year the over payment was made in and the PAYE and Accounts office reference numbers.
 MG Payroll Services will be first off the starting blocks;
  • All our clients with CIS over payments will have their year-end filed on the same day the final RTI report is submitted.
  •  On the day the final RTI submission is made a letter will be sent 1st class to HMRC to request the refund.

Potentially this could mean 2014/15 our CIS clients will have their repayments in the company bank account NOW!!!!

Is your company owed money by HMRC? 

If your company is faced with this dilemma, please contact us for an informal chat.

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