Strongwork Construction v Revenue & Customs [2009] UKFTT 292 (TC) (03 November 2009)

Strongwork Construction v Revenue & Customs [2009] UKFTT 292 (TC) (03 November 2009)

The appellant failed the compliance test due to 10 late PAYE payments outside the permitted tolerances, and did not establish a reasonable excuse for the defaults. The tribunal has no discretion to consider proportionality. HMRC was correct to remove gross payment status.

Citation
[2009] UKFTT 292 (TC)
Parties
Appellant: Strongwork Construction Limited; Respondents: The Commissioners for Her Majesty’s Revenue and Customs
Jurisdiction
United Kingdom
Judgment Date
03 November 2009
Procedural Posture
Appeal / First Tier Tribunal (tax) Decision
Outcome
Appeal dismissed
Legal Topics
Construction Industry Scheme, Gross Payment Status, PAYE Compliance, Reasonable Excuse, Proportionality
Tax Law Construction Industry Scheme Gross Payment Status PAYE Compliance Reasonable Excuse Proportionality

Case Brief

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Parties

Strongwork Construction Limited

Appellant

The Commissioners for Her Majesty’s Revenue and Customs

Respondents

Procedural Posture

Appeal / First Tier Tribunal (tax) Decision

Legal Issues

  1. 1 Whether the appellant failed the compliance test for gross payment status under the Construction Industry Scheme
  2. 2 Whether the appellant had a reasonable excuse for late PAYE payments
  3. 3 Whether proportionality should be considered in removal of gross payment status

Ratio Decidendi

The appellant failed the compliance test due to 10 late PAYE payments outside the permitted tolerances, and did not establish a reasonable excuse for the defaults. The tribunal has no discretion to consider proportionality. HMRC was correct to remove gross payment status.

Court Disposition

Appeal dismissed

Orders

  • Gross payment status removal by HMRC upheld
  • Right to apply for permission to appeal pursuant to Rule 39 of the Rules