The withdrawal by HMRC of the appellant's CIS gross payment status eight years after the relevant compliance failures was not a proportionate sanction, and the appellant's appeal was allowed.

Summary

The withdrawal by HM Revenue and Customs (HMRC) of the appellant company's construction industry scheme (CIS) gross payment status, eight years after the relevant compliance failures, was not a proportionate sanction, and the appellant's appeal was allowed.

Background

In September 2011, HMRC conducted a scheduled review of the appellant construction company to ensure that it was meeting its obligations under the CIS during the period from September 2010 to September 2011. HMRC identified compliance failures and subsequently withdrew the appellant's CIS gross payment status. In December 2012, the appellant appealed. At HMRC's request, the appeal was stayed for some time behind the