As a reminder (see last year’s article Companies-that-have-cis-deductions-on-their-own-income-and-claiming-repayments ) a claim must be made in writing for a repayment where a limited company has ended the tax year with CIS tax owing to them under the PAYE (RTI) system and the company is not able to recover the tax against PAYE/NIC /CIS tax payments due in the current year. The company must have made the Final Employer payment Summary (EPS) and all associated Full payment Submissions (FPS) for year in respect of claim.

The HMRC CIS repayment claim help card details the information that should be provided with repayment claim which should be sent to the address below.

PAYE Employer Office

Room BP4102

Benton Park View

Newcastle Upon Tyne

NE98 1ZZ

In previous years there have been delays in repayments made being made by HMRC but the help card mentions that CIS repayment claims will be processed within 25 days of HMRC receiving claim in writing and the claim matches the information held by HMRC.

A repayment can be set off against other HMRC liabilities of the company such as corporation tax, VAT etc but this request must be made in the tax repayment claim with the appropriate tax references (see help card link above).

If there are sufficient PAYE/NIC deductions in the following year to which the claim relates then it would be easier to claim the tax repayment by reducing the PAYE/NIC liability payments for that year.

Where a limited company is subject to the deduction of CIS tax from its subcontractor income then it should be considered if an application appropriate for gross payment status. A company would need to meet the criteria for three tests for business, turnover and compliance –see HMRC - Payments under CIS - gross or under deduction.

Please contact us for further advice or assistance in respect of CIS tax repayment claims.