Mr Alan Thomas Davies v Commissioners for Her Majesty's Revenue and Customs

Facts

The appellant, Mr Alan Thomas Davies, is a contractor who has traded within the new Construction Industry Scheme and employed subcontractors since the scheme began on 6 April 2007. Under regulation 4(1) of the Income Tax (Construction Industry Scheme) Regulations 2005 a contractor's monthly return, covering a period running from the 6th of one month to the 5th of the next, must reach HMRC by the 19th of the month in which the return period ended, and a return filed after that date attracts a penalty of £100 a month under section 98A(2)(a) of the Taxes Management Act 1970. HMRC imposed a £100 penalty on the appellant for the late submission of his monthly return for the month ended 5 June 2010, the payment having been received by 19 June 2010 but the return not being batched by HMRC until 22 June 2010. Through his accountant, Mr A H Thomas FCA, the appellant appealed on the ground that the delay was attributable to Royal Mail rather than to any failure on his part: he had attended his local post office at Gresford, Wrexham, in person on 15 June 2010, had the envelope weighed and paid the postage required. The appeal came before the First-tier Tribunal (Tax Chamber) sitting in Liverpool, the appellant himself not attending.