In Industrial Contracting Services Ltd v HMRC (TC01152 – 19 May) a company which was registered for ‘gross payment status’ within the construction industry scheme made a payment of Class 1A NIC 20 days late. HMRC cancelled its registration. The company appealed contending that the cancellation was disproportionate and unreasonable.
The First-tier Tribunal reviewed the evidence and the previous case law in detail rejected this contention and dismissed the appeal. Judge Blewitt specifically declined to follow obiter dicta of Judge Walters in Bruns (TC00371) which the company had cited as an authority.
Why it matters: FA 2004 s 66 provides that where a company which has registered for gross payment under the construction industry scheme fails to meet its ‘compliance obligations’ HMRC may cancel its registration.
There have been conflicting decisions by different...
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