Scofield v Revenue & Customs [2011] UKFTT 199 (TC) (24 March 2011)

Scofield v Revenue & Customs [2011] UKFTT 199 (TC) (24 March 2011)

Section 66(1) Finance Act 2004 confers a discretionary power on HMRC to cancel gross payment status, not a mandatory obligation. The statutory context, drafting, and contrast between 'may' and 'must' throughout the CIS provisions confirm Parliament's intent to confer discretion. The Tribunal has jurisdiction to...

Source-derived case information.

Citation
[2011] UKFTT 199
Parties
Appellant: John Scofield; Respondents: The Commissioners for Her Majesty’s Revenue and Customs
Jurisdiction
United Kingdom
Judgment Date
24 March 2011
Procedural Posture
Tax Appeal / First Tier Tribunal Decision
Outcome
Appeal allowed
Legal Topics
Construction Industry Scheme, Gross Payment Status, Statutory Interpretation, Discretion of HMRC, Compliance Test
Tax Law Construction Industry Scheme Gross Payment Status Statutory Interpretation Discretion of HMRC Compliance Test

Source-derived case record

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 3 Authorities cited 17 Party arguments 2 Amounts and remedies 1
Sign in to unlock

Parties

John Scofield

Appellant

The Commissioners for Her Majesty’s Revenue and Customs

Respondents

Procedural Posture

Tax Appeal / First Tier Tribunal Decision

Legal Issues

  1. 1 Whether HMRC has discretion to withdraw gross payment status under section 66(1) Finance Act 2004
  2. 2 Whether HMRC exercised any such discretion
  3. 3 Jurisdiction of Tribunal to review HMRC decision

Ratio Decidendi

Section 66(1) Finance Act 2004 confers a discretionary power on HMRC to cancel gross payment status, not a mandatory obligation. The statutory context, drafting, and contrast between 'may' and 'must' throughout the CIS provisions confirm Parliament's intent to confer discretion. The Tribunal has jurisdiction to review HMRC's exercise of this discretion.

Court Disposition

Appeal allowed

Orders

  • HMRC's cancellation of gross payment status is set aside
  • Mr Scofield's gross payment status is reinstated