The client

A commercial property developer tendering for a multi-million pound contract, where they were only able to be considered if they held CIS Gross Payment Status. The client had attempted to obtain CIS gross payment status, but HMRC rejected their application for historic non-compliance. This non-compliance stemmed from a former employee, with responsibilities for CIS filings, who had failed to keep on top of the compliance.

Our involvement

Our team were asked to assist the client in making an appeal to HMRC against the rejection and to consider an alternative route to obtaining CIS gross payment status.  The team simultaneously submitted an appeal against HMRC’s decision to deny gross payment status, outlining the mitigating circumstances. Separately, we worked with the client to put in the groundwork needed to achieve gross payment status in an alternative manner, should the appeal be unsuccessful.

The outcome

HMRC accepted our appeal against the rejection and granted CIS gross payment status to the company. In doing so, not only did it enable the client to go forward with its tender, but they also benefited from circa £1m in improved cash flow per year from not being subject to CIS withholding on payments by their clients.