The scheme of things

The appellant appealed against the 15 penalties imposed because of the late submission of five construction industry scheme (CIS) returns.

The taxpayer registered for the CIS in 2009. He filed his returns late from August to December. He cited the reason as him being a newcomer to the scheme and he had assumed incorrectly that the return was done on a yearly or quarterly basis instead of the monthly basis. He therefore felt his error arose from a misunderstanding not an act of dishonesty.

Moreover he said that as soon as he found out about his mistake he paid the tax due. The taxpayer also claimed that the penalties were excessive and could jeopardise his business. Finally he pointed out that the fines were allowed to accumulate before the first fine was served.

The First-tier Tribunal felt...