i just wondered if anyone else has any knowledge of this? we're a small joinery company with 5 employees in total, including me & husband as company directors. i do all the day to day paperwork & everything goes to our accountants once a year for the returns etc. to my horror, i got a letter from HMRC this morning saying we have 'failed compliance' & will now be taken off gross payments & be subject to 20% deductions against labour costs that we invoice. i own up that it's my ignorance in failing to understand the implications of a couple of late PAYE payments, but as we are currently paid gross, we don't have any CIS forms or returns to complete & i think i've become a bit 'blind' to the whole subject (plenty of more important things to worry about!). we have the right to appeal, which i will obviously do next week. being a Limited company, if the appeal fails, we will be able to offset the deductions against monthly PAYE due. it's not ideal, but at least we won't have to wait until our year end to claw the cash back. having a quick read around on the net, it seems a high % of companies are falling foul of the new rules on CIS & loads are being affected by this. if not Limited, some are even having to fold because they just can't trade under these circumstances! so, anyone had any dealings with the appeals procedure?