No excuse

The appellant who had a glass and glazing business made two late payments in respect of his self-assessment liabilities. He was also registered for gross payment under the construction industry scheme.

HMRC said the taxpayer no longer met the compliance test and sent him a notice withdrawing gross payment status.

The taxpayer claimed he did not receive this notice and the first he knew of it was when contractors told him they had been instructed by HMRC to pay him net.

As a result of this the taxpayer appealed saying his livelihood would be at risk if contractors had to pay him net because they disliked bothering with tax matters.

He claimed the late payments of tax were not deliberate but caused by cash flow problems.

HMRC said this did not constitute reasonable excuse.

The First-tier Tribunal decided that original notice withdrawing gross payment status...