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Financial effect not a factor

17 August 2015
Issue: 4514 / Categories: Tax cases , Admin
CRC v J P Whitter (Water Well Engineers) Ltd, Upper Tribunal (Tax and Chancery Chamber), 13 July 2015
The taxpayer company carried on business as water well engineers. It was registered for gross payments under the construction industry scheme. The business had about 
25 employees who were paid weekly. 
Each Monday time sheets were collected and sent to the company’s accountants who dealt with payment. On or shortly after the 5th of each month the accountants sent details to the taxpayer of the tax and National Insurance to be paid to HMRC. Historically payments had been made by BACS transfer or by cheque and as a result of a system that prioritised paying suppliers they were often late. For many years HMRC did not express any concerns.
After July 2011 the taxpayer changed its systems to ensure that HMRC was paid on time. After a review HMRC...

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