(A reader reports back) - You Said It!

Synopsis

The client was a subcontractor in the building industry and suffered tax deduction at source on all his earnings. By 31 January 2000 he had paid £2 028.88 by deduction against the liability of £2 067.69. The difference of £38.81 was not settled until 13 April 2000.

However the Revenue only gave credit for the tax paid of £2 028.88 from 5 April 2000 and was seeking to charge interest on the full £2 067.69 from 31 January 2000 to 5 April 2000. The Revenue had refused an offer to submit the forms CIS 25 and 'SWW' asked if there was any defence to this apparent injustice.

Advice given

'Marco' suggested that the claim should have been made to reduce payments on account of tax. The self assessment return would have shown deductions in Box 3.92...