Claiming back CIS deduction?

[Bristol spark]

I did some work for a building company back in November.

At completion he asked for the details so he could make the deduction to pay HMRC 20%.
And he would pass on a statement, so i can claim it back.

Im a LTD Company. He is also a LTD company and still trading.


I have contacted him several times since, and he promises to pass it on

The deduction was around £500.

What is my best course of action here?

Is it possible to claim this back without his CIS details?

I assume it would be a pretty silly move for him to have not paid it to HMRC?

Anyone any advice?

Cheers.

[Eric Mc]

Is your company registered under the CIS scheme?

Are you as a director of the company registered under the CIS scheme.

If the answer is "yes" to both, you offset the CIS tax deducted against your company's Corporation Tax liability for the relevant financial/CT year.

[Bristol spark]

Thanks Eric, But no I'm not CIS registered as i wanted to avoid having something else to remember to submit each month!

i was under the impression i needed a payment/deduction summery off the contractor which i somehow put into the HMRC payroll software.

This then goes as a negative into my HMRC account, so i don't pay any PAYE for a while?

Or have i got this wrong?

[Eric Mc]

I presume the payment on which the CIS was deducted was in respect of an invoice raised by your company?

[Bristol spark]

Eric Mc said:

I presume the payment on which the CIS was deducted was in respect of an invoice raised by your company?

Yes thats correct, 20% was deducted off the labour element.

[Eric Mc]

It's effectively an advance payment of the company's Corporation Tax bill. The procedure would be to pay the annual Corporation Tax amount due based on the company's profit for its financial year but deduct from the amount payable what has already been paid in advance through deduction under CIS.

I'm sure your accountant will tell you what to do and how to do it.