B9. Purchase: particular services

- Person unexpectedly acting as intermediary liable to make deductions under CIS 

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- In Donnithorne a director of a nursing home business carried on by a company personally arranged construction services. He was found to be an intermediary and liable to make CIS deductions. 

- "[4] The Appellant, who did not attend the hearing, was the Director of two nursing homes, and he wanted to ensure that various additions or improvements were made to the buildings of one nursing home. He therefore decided that he would take on the role of arranging for the construction work to be done, and it was accepted by his representative that he himself was acting as a contractor, even though he appeared not to be undertaking any of the work himself. It was accepted that he entered into the contracts with the three construction workers, and that if any of the workers had not been paid it was the Appellant who they would have sued for payment. The Appellant’s representative conceded that this made the Appellant “an intermediary” for the purpose of the CIS scheme, and that he thus had a potential liability to deduct and account to HMRC for tax under the CIS scheme."

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Legislation: 

Cases: 

Donnithorne v. HMRC [2016] UKFTT 241 (TC), Judge Nolan; 

HMRC manuals: 

Commentary: 

See also:

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