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Post Info TOPIC: CIS and Corporation Tax
SarahT


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CIS and Corporation Tax
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Hi everyone

My client is a limited company who does work under the CIS scheme. They had CIS tax deducted at source throughout the year and also made a substantial profit leading to a big corporation tax liability. My client wants to offset the CIS due back against the corporation tax payment that is due. Does anyone know whether this is allowed, or will HMRC want to receive payment of the CT before they issue a refund of the CIS?

Any help would be very much appreciated! smile

Sarah

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Dustin57


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Not sure whether HMRC will go for this. It is my understanding that the CIS should be offset against PAYE on the P35 not against Corporation Tax?

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Fay


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Hi Sarah

I agree with Dustin, but I have seen clients offset it against their CT liability and this has been accepted by HMRC.

If you're going to do this I would make sure that you enclose a detailed covering letter with the CT600 explaining what your client proposes.

Fay

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SarahT


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I was hoping this was the case as my client is intent on going down this route. Thank you Fay and Dustin for your help!


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