Mr Luke Berry is one of our valued clients for many years. He is a CIS Sub contractor. Works very hard and is good with all his paperwork, he is very organised and brings all his books on time so that we can prepare his CIS Accounts, file his tax return and get his CIS refund. We filed his 2016/17 tax return on time and got his CIS refund. After few months HMRC send letter saying client has to pay back all the CIS refund he received. Client was very unhappy and approached us.
We looked into the HMRC letter and investigated what went wrong. We found from HMRC that the Contractor has not paid the CIS tax for Mr Luke Berry, which is why they are demanding all the CIS refund which they already paid and also asking the client to pay taxes. We looked into all the CIS vouchers and they all look genuine and we understood that CIS tax has been deducted at Source. We knew that the client is innocent and genuine as we were filing the tax returns of this client for the many years.
We wrote to the contractor and explained the situation and manage to get all their RTI submissions for that tax year. In those RIT submissions it clearly stated that correct amount of taxes have been to HMRC. We then had a meeting with all our senior staff and had to work out a plan and approach to tackle this issue. We did our Investigations and appealed against these taxes with all the appropriate evidences.
After few weeks, we got the decision from HMRC. They cancelled all the taxes and wrote that client don’t owe any tax to HMRC. The client is very happy and appreciated our effort. It’s so satisfying for us when we see happiness in our clients as we always strive to go that extra mile to serve the client.
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