An HMRC assessment under the CIS regulations was held to be subject to a reduction in respect of the materials element of invoices from a subcontractor.
In November 2016, HM Revenue and Customs (HMRC) conducted a compliance review and discovered that the appellant company had been in the construction business since October 2013 but had not registered for the construction industry scheme (CIS). The appellant registered for the CIS on 16 November 2016.
Following an analysis of the payments made by the appellant during the period before it was registered under the CIS, HMRC issued a letter of determination under the Income Tax (Construction Industry Scheme) Regulations 2005, SI 2005/2045, reg 13(2) for the period October 2013 to October 2016, which covered the time from the start of construction operations to the point