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02 October 2000
My client is a subcontractor in the construction industry and suffers tax deduction at source on all his earnings.
By 31 January 2000 he had paid £2,028.88 by deduction against a liability of £2,067.69. My client did not settle the difference (due 31 January 2000) until 13 April 2000. However, on examining the Revenue's calculation of interest on the late settlement, it has only given credit for the £2,028.88 payment from 5 April 2000. Interest has been charged from 31 January 2000 to 5 April 2000 on the £2,067.69 as though no payment had been made at that date.
By 31 January 2000 he had paid £2,028.88 by deduction against a liability of £2,067.69. My client did not settle the difference (due 31 January 2000) until 13 April 2000. However, on examining the Revenue's calculation of interest on the late settlement, it has only given credit for the £2,028.88 payment from 5 April 2000. Interest has been charged from 31 January 2000 to 5 April 2000 on the £2,067.69 as though no payment had been made at that date.
My client is a subcontractor in the construction industry and suffers tax deduction at source on all his earnings.
By 31 January 2000 he had paid £2,028.88 by deduction against a liability of £2,067.69. My client did not settle the difference (due 31 January 2000) until 13 April 2000. However, on examining the Revenue's calculation of interest on the late settlement, it has only given credit for the £2,028.88 payment from 5 April 2000. Interest has been charged from 31 January 2000 to 5 April 2000 on the £2,067.69 as though no payment had been made at that date.
We notified the local Inspector before 31 January 2000 of the amount paid by deduction and offered to submit the CIS25s but our offer was declined and we were advised that they should be submitted with the client's tax return issued in April.
Thus my client has been charged interest on £2,067.69 when in fact all but £38.81 had been paid by 31 January 2000. Is there any defence to this injustice?
(Query T15,696) SWW.
By 31 January 2000 he had paid £2,028.88 by deduction against a liability of £2,067.69. My client did not settle the difference (due 31 January 2000) until 13 April 2000. However, on examining the Revenue's calculation of interest on the late settlement, it has only given credit for the £2,028.88 payment from 5 April 2000. Interest has been charged from 31 January 2000 to 5 April 2000 on the £2,067.69 as though no payment had been made at that date.
We notified the local Inspector before 31 January 2000 of the amount paid by deduction and offered to submit the CIS25s but our offer was declined and we were advised that they should be submitted with the client's tax return issued in April.
Thus my client has been charged interest on £2,067.69 when in fact all but £38.81 had been paid by 31 January 2000. Is there any defence to this injustice?
(Query T15,696) SWW.
