News

MEDICAL

TAX AND BUSINESS

GP MEDICAL

The Sandisons Logo

CONTACT

MENU

Court rules on online filing penalties

Source: Tribunal | 11/04/18

The Construction Industry Scheme (CIS) is a set of special rules for tax and national insurance (NI) for those working in the construction industry. Businesses in the construction industry are known as 'contractors' and 'subcontractors'. The scheme applies mainly to contractors and subcontractors involved in construction.

A recent First-Tier Tribunal decision examined a case, where a limited company in the floor and wall covering business had failed to make monthly returns on time for the period April 2016 – December 2016. There are penalties for late submission of CIS contractor monthly returns. The penalties increase the longer the returns are outstanding. HMRC issued the company with penalty assessments of £3,200 which were appealed. The company appealed on the basis of having a reasonable excuse for making late returns.

The issue at hand centred on changes to HMRC’s policies, which made online filing compulsory from April 2016. The company had previously filed paper returns without issue. However, the process for filing online was exacerbated as the person responsible for making the filings was not IT literate.

The person in question made every effort to resolve this issue with HMRC but was unable to activate the online filing system, partly due to the activation code being sent to the wrong address. The problems increased when the staff member ended up in hospital suffering from stress and anxiety, which may have been partly due to the issue of making the CIS filings. A request for digital exclusion was also rejected.

The Tribunal examined the facts and were clear that the combination of health problems and the inability to file online constituted a reasonable excuse for the defaults.  The penalties were dismissed.

Newsletter

With our newsletter, you automatically receive our latest news by e-mail and get access to the archive including advanced search options!

> SIGN UP FOR THE NEWSLETTER

> LOGIN

Some accountancy websites also provide pages and pages of tax information, helpsheets, etc. We prefer to give clients personally tailored advice. So, if you want details of tax rates and allowances just go to the HMRC website on which you should find what you’re looking for. If you need more individual advice please contact us.

Below are links to websites you may find of interest, but as we like to support our local community and clients, we have included links to websites that may be of interest:

HMRC

FT

BBC

VEALE WASBROUGH VIZARDS

CESP

PRACTICE INDEX

More Local:

IPAD CREATIVE

ANGLEBURY PRESS

OFFCAMBER.CO.UK

SANDISONS

Badger House,

Salisbury Road, Blandford Forum

Dorset DT11 7QD

Telephone: 01258 451234

Fax: 01258 453280

Sandisons is the trading name of Sandisons Limited. Registered office: Badger House, Salisbury Road, Blandford Forum, Dorset DT11 7QD.  Co. Reg. No. 05068291

Privacy Statement. Sandisons Limited respects your right to privacy. Any personal or company details received via our website will only be used by Sandisons Limited.

The Sandisons Logo