CIS ignorance

The appellant a recently self-employed taxpayer appealed against 22 penalties for late provision of monthly returns under the construction industry scheme (CIS) in respect of the months ending 5 April 2009 to 5 July 2009 inclusive. 

The appellant protested that he should be considered for relief due to a ‘reasonable excuse’: his ignorance of the tax system requirements for self-employed taxpayers led him to hire an accountant who failed to inform him of the need to file monthly returns.

It was only when he changed accountants he realised his error and set to rectify the situation.

The First-tier Tribunal found that neither his ‘ignorance of the obligation to submit such returns’ nor the previous accountants’ failure to inform him of the requirement amounted to a ‘reasonable excuse’ and therefore a penalty must be paid.

With regard to the months between 29 August and 6...