In J O’Kane v HMRC (TC02712 – 23 May) a subcontractor (K) submitted accounts on an earnings basis so that his 2009/10 accounts included work which he had carried out for a contractor (C) but for which C had not paid him until 2010/11. K did not pay the full amount of his 2009/10 tax by the due date and HMRC imposed surcharges. K appealed contending that he had a reasonable excuse because the surcharges related to the work for which he had not been paid until 2010/11 and in respect of which C had accounted for tax under the CIS scheme. The First-tier Tribunal allowed K’s appeal. Judge Redston found that K ‘knew by January 2011 that the CIS tax deducted by the contractor exceeded the 2009/10 income tax actually due on 31 January 2011 and thus believed he had...
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In J O’Kane v HMRC (TC02712 – 23 May) a subcontractor (K) submitted accounts on an earnings basis so that his 2009/10 accounts included work which he had carried out for a contractor (C) but for which C had not paid him until 2010/11. K did not pay the full amount of his 2009/10 tax by the due date and HMRC imposed surcharges. K appealed contending that he had a reasonable excuse because the surcharges related to the work for which he had not been paid until 2010/11 and in respect of which C had accounted for tax under the CIS scheme. The First-tier Tribunal allowed K’s appeal. Judge Redston found that K ‘knew by January 2011 that the CIS tax deducted by the contractor exceeded the 2009/10 income tax actually due on 31 January 2011 and thus believed he had...
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