CISR82060 - Compliance: Regulation 13 determinations: Failure to submit monthly returns

Determinations made to cover failures to submit monthly returns

A Regulation 13 determination may be used to pursue contractors who have persistently failed to submit monthly returns. The use of determinations in these cases should only be considered in the following circumstances

• a report is received from the CIS Unit at AO Shipley showing that no monthly returns have been submitted for some time

and

• action by the CIS Unit or other HMRC office has failed to resolve the matter

and

• the file shows a history of subcontractor payments or contains evidence that such payments were made in the period to be covered by the determination.

Either the warning letter or the determination may encourage the contractor to contact you. In this case you should make the following points

• that you have reason to believe that payments have been made to subcontractors in the period covered by the determination
• that the evidence or information provided by the Employers Section, the DMB section and, if appropriate, by the contractor does not satisfy you that all such payments are being made under the deduction required by FA04\s61(1)
• that, since the contractor has neither submitted monthly returns nor provided a satisfactory explanation for not doing so, the determination has been or will be raised to recover sums which are assumed to be due in respect of payments to subcontractors who are not registered for gross payment.

If this results in the contractor giving an acceptable written assurance that either no payments subject to the Scheme were made in the period in question or that all such payments were made properly under the Scheme, then you may discharge the determination under appeal or not proceed with it as appropriate. You will still need to pursue the matter of why monthly returns were not submitted, where appropriate.