Contour Business Interiors v Commissioners for Her Majesty's Revenue and Customs

Facts

Contour Business Interiors, a contractor within the Construction Industry Scheme, was required to file monthly CIS returns with HMRC. In January 2010 it appointed new agents, George H.W. Griffith Ltd, trading as Griffith & Griffith, in place of its previous accountants, who had filed the returns online. The new agents began submitting paper returns, and CIS payments were made in accordance with them. HMRC's records showed no monthly return received for the periods ended 5 February, 5 March, 5 April, 5 May and 5 June 2010, and penalty notices were issued from 5 March 2010 onwards, the last on 2 July 2010. The agents wrote to HMRC on 25 May 2010, saying that paper returns had been filed in good time each month and suggesting that the previous accountant's online filing might explain the demands. HMRC replied on 4 June 2010 that the agents were not authorised under a form 64-8, and on 22 June 2010 refused the appeal for the periods 02/10, 03/10 and 04/10 because no returns had been received. That decision was upheld on review on 26 August 2010, and the agents appealed to the First-tier Tribunal, which determined the matter on the papers.