HMRC v Neil Martin CIS case nears conclusion

The David and Goliath contest between the HM Revenue & Customs (HMRC) and Cumbria-based civils contractor Neil Martin Ltd is drawing to a head after the firm lodged its appeal against a High Court ruling that made the department "untouchable" for any mistakes.

In 2006 (CJ 4 October) the High Court ruled that despite errors in failing to get a CIS card to the contractor, resulting in a 56-day delay and financial losses of £550,000 for the company - which eventually folded - the courts did not have the power to intervene.

A decision on the appeal is expected within 12 weeks. It is anticipated that HMRC will try to block the appeal as the ramifications for losing the case could be massive for the department.

The company's owner Neil Martin told CJ: "We have come this far so there is no turning back. It has cost us a further £20,000 to lodge the appeal, but the stakes are so high for both us and the industry that we have to continue."