ESE Rendering Solutions Ltd v Revenue & Customs (INCOME TAX/CORPORATION TAX : Sub-contractors in the construction industry) [2019] UKFTT 309 (TC) (10 May 2019)

ESE Rendering Solutions Ltd v Revenue & Customs (INCOME TAX/CORPORATION TAX : Sub-contractors in the construction industry) [2019] UKFTT 309 (TC) (10 May 2019)

HMRC failed to provide sufficient evidence that penalty notices were issued for all but one of the periods in question; only the £100 fixed penalty for October 2016 was properly notified and is due and payable, as the appellant had no reasonable excuse for the delay.

Citation
[2019] UKFTT 309
Parties
Appellant: ESE Rendering Solutions Limited; Respondents: The Commissioners for Her Majesty’s Revenue & Customs
Jurisdiction
United Kingdom
Judgment Date
10 May 2019
Procedural Posture
Income Tax/corporation Tax Sub Contractors in the Construction Industry (cis) Penalty Appeal / First Tier Tribunal (tax Chamber) Substantive Decision After Oral Hearing
Outcome
Appeal allowed in part; appeal dismissed in part.
Legal Topics
Construction Industry Scheme (cis), Late Filing Penalties, Reasonable Excuse, Burden of Proof, Procedural Fairness
Tax Law Construction Industry Scheme (cis) Late Filing Penalties Reasonable Excuse Burden of Proof Procedural Fairness

Case Brief

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Parties

ESE Rendering Solutions Limited

Appellant

The Commissioners for Her Majesty’s Revenue & Customs

Respondents

Procedural Posture

Income Tax/corporation Tax Sub Contractors in the Construction Industry (cis) Penalty Appeal / First Tier Tribunal (tax Chamber) Substantive Decision After Oral Hearing

Legal Issues

  1. 1 Whether HMRC discharged the burden of proving penalty notices were issued for late CIS returns
  2. 2 Whether the appellant had a reasonable excuse for late filing of CIS returns
  3. 3 Whether the £100 penalty for October 2016 was due and payable

Ratio Decidendi

HMRC failed to provide sufficient evidence that penalty notices were issued for all but one of the periods in question; only the £100 fixed penalty for October 2016 was properly notified and is due and payable, as the appellant had no reasonable excuse for the delay.

Court Disposition

Appeal allowed in part; appeal dismissed in part.

Orders

  • Appeal allowed against all penalties except the £100 fixed penalty for October 2016.
  • Appeal dismissed against the £100 fixed penalty for October 2016, which is due and payable.