A company’s managing director’s misunderstanding of the interaction between the CIS rules and the agency rules was despite him having taken reasonable care to comply with statutory CIS obligations, and the failure to deduct CIS amounts was due to an error made in good faith. 

Summary 

A company’s managing director’s misunderstanding of the interaction between the construction industry scheme (CIS) rules and the agency rules was despite him having taken reasonable care to comply with statutory CIS obligations, and the failure to deduct CIS amounts was due to an error made in good faith. 

Background 

The appellant company (HRL) contracted with end-clients in the construction industry to provide labour and identified workers to carry out the required tasks. HRL did not engage the workers. Instead, it contracted with intermediary agencies, and those agencies