HMRC wont refund overpaid CIS tax

stacey1444

Where do I stand against the HMRC refusing to return my overpaid CIS tax for 3 years.
My limited company has been owed 3 years of overpaid CIS tax but HMRC computer says Corporation tax is owed and has been trying to take me to court, even though I paid more CIS tax and am therefore due a refund for the last 3 years.
HMRC have admitted that it is a computer error and when my accountant manages to speak to someone in person they have adjusted our account to show we owe £0 but the computer keeps over-riding it and still sends us debt letters and that's why we aren't getting the rebate, we are due around £9k as this has been going on for 3 years.
I have just done my yearly accounts for this year and due yet another rebate but I know I'm not going to get it.
Where do I stand and what do you suggest is the best course of action? Can I take HMRC to small claims for the money as I have written proof that I don't owe them anything. 

Pennywise

I've experience of this with one of my clients.  It took a formal complaint to the HMRC adjudicator together with letters to the clients local MP to get the refunds sorted.  You need to start escalating it through HMRC formal complaints procedure to start the ball rolling.

Sibbers123

You or your accountant has to complete a yearly EPS and CIS iForm each tax year to 'claim' the CIS that you have suffered. Once claimed, HMRC will offset the CIS against any outstanding liabilities (corporation tax and PAYE) before paying you the balance (if any).

We do this for numerous clients and very rarely have any problems.

Pennywise

Sibbers123 said:

We do this for numerous clients and very rarely have any problems.

Yes, likewise, but occasionally, HMRC system "says no" and you literally can't get any joy nor sense out of them to correct their system failure, like appears to have happened with the OP.  For us, too, it works fine for 95% of our clients, but when it doesn't work, it really doesn't work and HMRC staff seem unable or unwilling to fix their shambles of a system, hence why they need a kick up the jacksie from the adjudicator or MP.