Construction Industry Scheme - CIS8600

Scheme compliance: contractors: introduction

INTRODUCTION

This paragraph serves as an introductory overview of the module on contractor compliance under the Construction Industry Scheme. For more detailed coverage use the above links to the information menu or action guide menu.

This module deals with the failure of contractors to fulfil obligations placed on them by the Construction Industry Scheme and any action required of Network Offices relating to such failures.

Compliance breaches by contractors generally involve errors of omission or commission, that is, s/he has failed to do something which they should have done under CIS or something that they do represents an irregularity under CIS.

There are action guides involving failures of contractors to

• inspect certificates

• inspect Registration Cards

• obtain or submit CIS24 vouchers

• submit vouchers generally

• issue CIS25 vouchers to registered subcontractors

• submit CIS36 returns

• requests from subcontractors for more vouchers

In addition, there are action guides dealing with certain voucher exception reports which may reach Network Offices involving the irregular use of CIS documents.

IMPORTANT NOTE FOR NETWORK OFFICES RECEIVING VOUCHERS OR CHEQUES

Remember that vouchers should normally be returned by contractors to the CIS Centre and not to Network offices. This includes RLS vouchers and spoilt vouchers (returned with form CIS52). Where it becomes apparent that this is occurring on a regular basis you should consider contacting the contractor to remind him/her of the correct procedure and to point out that this may result in delays in the issue of voucher stocks to him/her and to their subcontractors.
Where you receive RLS vouchers (CIS23 & CIS25) in a Network office you may re-issue them if the address on the CIS system has been updated since the vouchers were issued. Where spoilt vouchers are returned for cancellation you should refer to CIS6319 for the action to be taken. Where completed vouchers are received you must send them immediately to the CIS Centre. This is because any delay will hinder both the processing of those vouchers and the replenishment of stocks to the contractor or subcontractor.

Where cheques are received you should follow the usual procedures and send them to the relevant Accounts Office on the day of receipt.

PENALTIES

In all cases where penalties are an issue you should consider whether the failure is substantial enough to warrant a penalty under TMA70\s98(1)(b), or TMA70\s98(2) or whether to consider the non-compliance when reviewing the filer's next certificate application. If you consider that a penalty is justified you should refer the case to BS(CIS) before taking further action.

CIS forms
Glossary
Where am I?
Quick links index- CIS0100