HMRC v JP Whitter (Water Well Engineers)

In HMRC v JP Whitter (Water Well Engineers) [2015] UKUT 392 (13 July 2015) the UT found that HMRC had been right to cancel the taxpayer’s construction industry scheme (CIS) registration despite the detrimental financial consequences of the cancellation.

Employees of the company were paid weekly. Each Monday time sheets were collected and sent to the company’s accountants which on or shortly after the 5th of each month sent details of the tax due. The company then paid HMRC either by BACS transfer or by cheque. It was inevitable that the system would cause payments to HMRC which fell due either on the 19th or 22nd of each month to be made late. This had been the position for many years and HMRC had never chased payment or indeed expressed any concern that PAYE payments were late. Following a review HMRC had cancelled...