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J P Whitter (Waterwell Engineers) Ltd v CRC, Court of Appeal, 24 November 2016
Effect on turnover of cancellation of gross payment status
J P Whitter was a small family-owned company that was registered for gross payments under the construction industry scheme. In 2009 it failed an annual review for the first time because of late payment of PAYE and HMRC cancelled its registration.
The company’s appeal was upheld but the letter allowing the appeal warned that the rules would be interpreted strictly in the future. Despite this the company failed two further reviews and HMRC cancelled its registration after the third failure.
The company’s appeal’s was allowed because the First-tier Tribunal accepted that the loss of gross payment status would have a detrimental effect on turnover and it would take at least ten years for J P Whitter to regain its present position.
The Upper Tribunal overturned that decision so the taxpayer appealed.
The issue before the Court of...
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