The Income Tax (Sub-contractors in the Construction Industry) Regulations 1993

Payment of amounts deducted to collector—further provisions

10.—(1) The collector shall give a receipt to the contractor for the total amount paid under regulation 8 or 9, if so requested, but if a receipt is given for a total sum paid at the same time which includes that amount and also tax deducted under the Income Tax (Employments) Regulations 1993, or earnings related contributions, or both, then no separate receipt for the total amount so paid need be given.

(2) If the amount specified in regulation 8 or 9(1) which a contractor is liable to pay to the collector exceeds the amount, if any, actually deducted by him from payments made during the relevant income tax period but he satisfies the collector that he took reasonable care to comply with the provisions of section 559 and of these Regulations and that either—

(a) the under-deduction or failure to make a deduction was due to an error made in good faith, or

(b) in spite of such reasonable care as aforesaid, he had been led to the genuine belief that a payment made by him, which was one to which section 559 applies, was not or was not wholly such a payment,

then the collector may direct that the contractor shall not be liable to pay that excess to the collector.

(3) If the amount specified in regulation 8 or 9(1) which a contractor is liable to pay to the collector exceeds the amount, if any, actually deducted by him from payments made during the relevant income tax period but the inspector (whether or not an assessment under regulation 14 has been made) is satisfied that the person to whom the contractor made such payments either—

(a) was not chargeable to income tax or corporation tax in respect of those payments, or

(b) has made a return of his income or profits in accordance with section 8 or section 11 of the Management Act(1), in which those payments were taken into account, and paid the income tax and Class 4 contributions due or corporation tax due in respect of such income or profits,

then the inspector shall, if the contractor so requests, direct that the contractor shall not be liable to pay that excess (or any interest in respect of it) to the collector.

(4) If a contractor is aggrieved by the failure of a collector to make a direction under paragraph (2), he may, by notice to the collector, within 30 days after the date of a notice given after 19th April of a refusal by the collector to make such a direction, appeal to the General Commissioners against that refusal.

(1)

Section 8 was substituted by section 90(1) of the Finance Act 1990 (c. 29); section 11 was amended by paragraph 5 of Schedule 24 to the Finance Act 1972 (c. 41), paragraph 8 of Schedule 7 to the Capital Gains Tax Act 1979 (c. 14), paragraph 32 of Schedule 29 to the Income and Corporation Taxes Act 1988, section 91(4) of the Finance Act 1990 and sub-paragraphs (1) and (2) of paragraph 2 of Schedule 10 to the Taxation of Chargeable Gains Act 1992 (c. 12), and (prospectively) by section 82 of the Finance (No. 2) Act 1987 (c. 51), paragraph 10(2) of Schedule 29 to the Income and Corporation Taxes Act 1988, and section 91(2), (3) and (5) to (7) of the Finance Act 1990.