In G & A Hardwicke (t/a PVC Fascia Company) v HMRC (TC00894 – 17 January) two brothers who traded in partnership in the construction industry failed to deduct tax from certain payments to subcontractors. HMRC issued determinations under Income Tax (Construction Industry Scheme) Regulations 2005 SI 2005/2045 reg 13. The partnership appealed contending that the subcontractors had accounted for the tax due on their income and that SI 2005/2045 reg 9 applied. The First-Tier Tribunal reviewed the evidence and allowed the appeal in part finding that some of the subcontractors had made returns and paid the tax due but that three of the subcontractors had not ‘provided any assistance in resolving the dispute’. The tribunal therefore upheld the determinations with regard to the amounts paid to those three subcontractors.
Why it matters: SI 2005/2045 reg 13 provides that where a...
