CIS , refund during tax year

[ainaedil]

Hi all,

I was registered for CIS under 20% deduction.

Now I have applied for Gross payments.

Is there any way I can get CIS already suffered back from my contractor before year end?

Kind regards.

[mullet]

In short, the answer must be no - because you are not legally entitled to gross payments until the certificate is issued. I can't find specific guidance from HMRC, but CISR72110 (final para) is useful:

Where a subcontractor has their gross payment status withdrawn by HMRC ... they will receive 90 days’ notice before the withdrawal takes effect. If the withdrawal of gross payment status occurs because of serious compliance failures, then the withdrawal is made with immediate effect.

If a later appeal is made against the withdrawal of gross payment status after CIS deductions have commenced, the subcontractor’s payment status will once again revert to gross payment status following the logging of that appeal, and a change of tax treatment notification on form CIS316(B) will be issued to the contractor(s) associated with the subcontractor.

There will therefore be an intervening period when the subcontractor had CIS deductions made before the appeal was logged. Where this happens, the subcontractor has no right of early repayment of any CIS deductions made in these circumstances. This is because, until such time as the Tribunal or the courts decide otherwise, there is no legal entitlement for the subcontractor to be paid gross in the intervening period.

[ainaedil]

Thank you very much

[section 44]

If you don't have sufficient tax liabilities to set the deducted tax against then you could approach HMRC for a refund. The contractor will/should not provide a refund.