Sizzling CIS

Can readers confirm whether my current approach with regard to a client in the building industry is correct?

Because HMRC now seem to be taking longer and longer to process and confirm overpayments of tax under the construction industry scheme (CIS) I have been setting the overpaid tax – or at least my calculation of it – against the following corporation tax liability.

However it has been suggested to me by a fellow accountant that what I am doing here may not be quite right.

Let us say that my client company has an accounting year that ended on 31 May 2012 so that the corporation tax liability is due on 1 March 2013.

I would set against that corporation tax the overpaid CIS tax for the same period ie for the period 1 June 2011 to 5 April 2012 and from 6 April 2012 to...