The Construction Industry Scheme remains a difficult beast with which to comply.

Here at Eaves & Co in Leeds we are dealing with a case where tax was not deducted by a contractor on a certain category of payment to its subcontractors.

The case has been ongoing for a good of time and we have been introduced to mitigate the CIS tax exposure to the contractor.  Our well considered case that the contractor took “reasonable care” in implementing the CIS has been put to HMRC.  We await to hear whilst still claiming evidence that the subcontractors have actually paid all relevant taxes, which is the second line of defence.

Reasonable excuse is a well tested path in CIS terminology with a number of recent cases taken to Tribunal in attempt to avoid the consequences of non-CIS compliance.  We expect our case of reasonable care to be thoroughly tested by HMRC.

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