An individual who inadvertently became a contractor and was obliged to make construction industry scheme deductions from subcontractors was discharged from liability despite failing to do so.
The appellant was the director of two nursing homes. He wished to ensure that various additions or improvements were made to the buildings of one nursing home, and therefore decided to take on the role of arranging for the construction work to be done.
HM Revenue and Customs (HMRC) assessed the appellant for having failed to make deductions under the construction industry scheme (CIS) in respect of payments made to three subcontractors, and also sought penalties for having made no CIS returns. The appellant appealed.
It was conceded by his representative that the appellant was acting as a contractor, even though he appeared not to be undertaking any of the work himself. It was accepted that he entered into the
