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The taxpayer was a cleaning company that provided workers to corporate clients. It operated a PAYE scheme and registered as a contractor in 2010. As a result of taking professional advice the company did not submit PAYE returns on the basis that the cleaners were not subject to supervision direction or control by another person.
In June 2017 HMRC said the company should submit employment intermediaries returns and despite having received advice to the contrary in February 2018 the company filed returns for seven quarterly periods from July 2016 to January 2018.
HMRC imposed late filing penalties (TMA 1970 s 98). The taxpayer appealed saying it did not consider the returns were required.
The First-tier Tribunal said the taxpayer had not provided evidence to show the specific working arrangements. Therefore it had not met the criteria to disapply the requirement of a return.
On...
