In B Mabe v HMRC [2016] UKFTT 340 (12 May 2016) the FTT found that it had been reasonable for a taxpayer to rely on his accountant to point out any filing obligations under the Construction Industry Scheme (CIS).
Mr Mabe ran a fire protection business which fell within the definition of a construction operation for the purposes of the CIS. He had failed to deduct income tax. The issue was whether he had taken reasonable care to comply with his obligations under the CIS scheme; and whether his failure to deduct tax was due to an error made in good faith. The FTT noted that the test involved applying an impersonal and objective legal standard to a particular set of facts and circumstances.
The FTT considered that given his lack of familiarity with tax and accounting issues Mr Mabe had taken ‘the very sensible step’...
