Northern Ireland tax question.

the_money_pit

Hi all. Now I know this may seem like the wrong forum for this question but as I want to ask my question specifically to those from NI I have chosen not to put it in the "tax" forum.
My other half works in the construction industry and 6 months ago he had his "Gross Payment Status" removed for very minor transgressions (2 late payments within 3 years). As a result of this we are finding life very difficult, totally unable to meet our current monthly tax liabilities due to the 20% deduction at source. The HMRC totally refuse to offset our monthly liabilities against our personal deductions so basically we are screwed.
What I would like to know is;

Are any of you in the same situation or similar to us or know of someone this is happening to?

Do any of you have any useful advice or pointers to help us out?

Thank you .

System

Have you appealed their decision in writing? Basically that's the only way they will deal with this sort of thing.

Just to add though. Gross Status is a prized concession, the majority of CIS workers are paid net of CIS deductions of 20%, 30% if they are just starting and are awaiting their UTR number. Once the gross status is revoked then the only alternative option is 20%.
So you need to appeal in writing siting the extraordinary reasons for the late payments. IE: was there a problem with your accountant, was someone ill etc.

the_money_pit

Pam17 wrote: »

Have you appealed their decision in writing? Basically that's the only way they will deal with this sort of thing.

Just to add though. Gross Status is a prized concession, the majority of CIS workers are paid net of CIS deductions of 20%, 30% if they are just starting and are awaiting their UTR number. Once the gross status is revoked then the only alternative option is 20%.
So you need to appeal in writing siting the extraordinary reasons for the late payments. IE: was there a problem with your accountant, was someone ill etc.

Thanks pam for your reply. we have already appealed and lost. Losing 20% would not be a problem if we just lost it on our personal income, as it sits we lose 20% of our total top line, 80% of which is used to pay subbies and then we are expected to pay subbies deductions monthly.
To give an example, July we had £11000 deducted at source, we estimate that approx £1200 of this is the actual amount we owe for our personal liability, the rest is the 20% subbies tax. HMRC will not take this into consideration and still expect us somehow to pay another £9800 on the 19th of month,

We estimate at the year end we will have an overpayment of £60000 and the revenue wont allow us to offset.
I really want to know how others are coping in this situation,