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HMRC internal manual

Construction Industry Scheme Reform Manual

HM Revenue & Customs
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Register and maintain subcontractor: Appeals against refusal or cancellation of Gross Payment Status: preparation for Tribunal hearings

CISR48600 Action guide contents

The key to defending your decision to refuse gross payment status is good preparation before the tribunal Hearing.

With Tax Treatment appeals to the tribunal, the Tribunal caseworker is not normally required to send an HMRC statement of case to the Tribunal service (see ARTG8380). The appeal will normally simply go forward to an oral hearing;

You should, in all cases, use BROCS (for employer payments up to 5 April 2013), or ETMP (for employer payments from 6 April 2013), COTAX and or SA to prepare a detailed schedule of payments, SA or COTAX returns, contractor monthly returns or employer returns to cover all payments and returns that became due in the qualifying period prior to the application, or scheduled review. This should have already have been done at the decision maker stage, so that the appellant has full information on what information we have used to make our decision.

You should also prepare a schedule of payments and obligations due since the end of the qualifying period that is under appeal to show at the Tribunal hearing whether the appellant has met their obligations on time since that date, and therefore whether the ‘reason to expect’ test (see CISR46100) is also passed.

Schedule of payments/delays

It is important that the appellant and their representative know the case they have to meet. It is part of the rules of natural justice. It follows, therefore, that any schedules or evidence must be given to them in advance of the tribunal hearing.

Please also bear in mind any claims made by the subcontractor as part of their appeal regarding acquiescence by HMRC; the tax case (EWHC 1294) of John Cormack v CBL Cable Contractors Ltd refers. This case revolved around PAYE payments being made late, where payment cheques were being collected late by HMRC.