Reasonable claim

12 April 2010

Issue: 4250 / Categories: Tax cases , Income Tax

R (on the application of Valentines Homes & Construction Ltd) v CRC, Court of Appeal

A construction company failed to pay its PAYE in 2007 for the four months from May to August. HMRC issued two notices on the appellant under the Income Tax (PAYE) Regulations 2003 reg 78(4) demanding payment of the tax due within seven days of the issue of the notice.

Later HMRC instituted proceedings in the county court against the appellant claiming around £84 000 and a court fee of £630. The appellant admitted that it owed more than £60 000 in tax but no more than that.

After four months HMRC replied saying that because the appellant had not provided the actual figures in time the department would not amend its claim. The appellant business supplied full details of how it had calculated the figure and paid the amount over to the Revenue.

As no agreement was reached with HMRC the...

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