Payments by a contractor to certain workers were not made to subcontractors for construction industry scheme purposes, due to the nature of the relationship between the parties.
The appellant, a self-employed bathroom fitter, undertook work for property owners. He did not charge a mark-up on goods and materials he supplied to his customers as part of his work.
Between 2010 and 2013, the appellant paid other parties for construction work done at sites where he was working. Those parties invoiced the appellant for their work, and the appellant received from the client for whom he was working an equal sum; the appellant made no markup (in the same way as for goods and materials).
HM Revenue and Customs (HMRC) subsequently raised a determination that the appellant was liable to pay tax under the construction industry scheme (CIS) on payments to the other workers, together with penalties for
