Reasonable excuses

In an appeal concerning the cancellation of a company gross payment status within the construction industry scheme (CIS) the appellant appealed against a review made by HMRC for the year ended December 2008.

The appellant company a ground-work contractor in the construction industry which was established in October 1998 made 12 late payments under the PAYE scheme during the period in question and subsequently could not be treated as having satisfied the compliance test under Income Tax (Construction Industry Scheme) Regulations 2005 reg 32.

The issue was whether or not the appellant had a reasonable excuse for its late PAYE payments. The First-tier Tribunal found that not only had the company placed a ‘continuing reliance’ on its consultant (who was ultimately the real cause of the late payments) but also its lack of ‘experience and expertise in accounting administrative and taxation matters’ amounted...