Wright v Revenue and Customs [2011] UKFTT 14 (TC) (20 December 2010)

Wright v Revenue and Customs [2011] UKFTT 14 (TC) (20 December 2010)

The appellant did not have a reasonable excuse for failing to meet the compliance test, as his cash flow difficulties resulted from a lack of reasonable foresight and due diligence, and he failed to seek timely advice or negotiate time to pay arrangements before the due date. The Tribunal upheld HMRC’s decision to withdraw gross payment status.

Citation
[2011] UKFTT 14 (TC)
Parties
Appellant: Paul Wright; Respondents: The Commissioners for Her Majesty’s Revenue and Customs
Jurisdiction
United Kingdom
Judgment Date
20 December 2010
Procedural Posture
Appeal Against Withdrawal of Gross Payment Status Under the Construction Industry Scheme / First Tier Tribunal (tax), Final Decision
Outcome
Appeal dismissed
Legal Topics
Construction Industry Scheme, Gross Payment Status, Compliance Test, Reasonable Excuse, Income Tax Self Assessment
Tax Law Construction Industry Scheme Gross Payment Status Compliance Test Reasonable Excuse Income Tax Self Assessment

Case Brief

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Parties

Paul Wright

Appellant

The Commissioners for Her Majesty’s Revenue and Customs

Respondents

Procedural Posture

Appeal Against Withdrawal of Gross Payment Status Under the Construction Industry Scheme / First Tier Tribunal (tax), Final Decision

Legal Issues

  1. 1 Whether the appellant had a reasonable excuse for failing to meet the compliance test for gross payment status under the Construction Industry Scheme

Ratio Decidendi

The appellant did not have a reasonable excuse for failing to meet the compliance test, as his cash flow difficulties resulted from a lack of reasonable foresight and due diligence, and he failed to seek timely advice or negotiate time to pay arrangements before the due date. The Tribunal upheld HMRC’s decision to withdraw gross payment status.

Court Disposition

Appeal dismissed

Orders

  • Decision withdrawing gross payment status from the appellant is upheld