CIS300 penalties

CIS300 penalties

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I have just had a frustrating conversation with the construction industry 'hepline' regarding one of my clients. The jist of this was as follows:

1. Whilst we may be noted as agent for PAYE, and all correspondence was sent to our address, we were NOT agent for CIS purposes, so they were not willing to discuss said client with us. I asked how I advised we were agent given taht there was no space on their 64-8 to advise of such, I was told I should sent a letter to the tax office dealing with the PAYE. Is it just me, or has this entire system just been drawn up to make life more rather than less difficult.

2. We had advised our local office in March 2008 that the scheme in question should be closed down, as our client would not be employing anyone, or using any subcontracts in the future, though he would continue to trade. The 'helpline' advised that this was the incorrect procedure, and we should have advised the helpline or the office in Newry.

Obviously, no-one in the local office saw fit to say they couldn't do what we had asked. Unfortunately, our client now has penalties for late submission of CIS300 forms he states he never received. I have no reason to disbelieve him, as all the penalties arrived, around the same time as what he insists was the first form he received, and if he had received any previous forms, he would have brought them to me as he had done.

I will be appealing the penalties on the basis that we had relied on the letter being successful in closing down the schemebut the reason for this question is twofold, first to warn any agents who are ignorant of the above administrative quirks (perhaps they are widely known, and I am the exception), but also to check whether others on this site agree that what I have been told is correct, or have any advice on other grounds for appeal regarding the penalties.

Whilst the seperate notification of acting as agent for CIS300 is inconvenient, it is something I will be doing for the limited number of clients for whom it is relevant.

Any comments or assistance will be appreciated, even if only to tell me that I need to do
more research into the CIS300 system, so that I fully understand it, especially the adminstration of it.
Stephen Davies

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By User deleted
09th Mar 2009 15:23

cis - very unhelpful
I too have had many problems with CIS - they refuse to speak to you and one client registered and did not receive his first form for 3 months and then they also sent him penalties at the same time!!

I did appeal and won - but we should not have to go throught the hassle - they must have very poor systems.

I have also experienced many penalties for forms completed and submitted in time - all my returns go in by recorded delivery if I can.

Tax credit people are just as unhelpful.

Regarding the 64-8 - that makes a mockery of the whole HMR&C system.

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Euan's picture
By Euan MacLennan
08th Mar 2009 10:05

Two comments
1. Do it online
One of the merits of doing it online is that you do not have to concern yourself with which office to call or where to send a letter. Their website is HMRC's preferred communication channel, so use online Agent Authorisation for CIS.

2. Complain
It is not so much an appeal against the penalties - it is a complaint that penalties have been incorrectly imposed following your letter to the effect that no further CIS returns would be required. However, in these circumstances, I would have submitted a nil CIS return saying that no payments to sub-contractors were expected in the next 6 months as a belt and braces exercise to cover any delay in the HMRC closing the CIS scheme.

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