CISR90080 - View Customer: Penalty Inhibitions

General

Having followed the steps listed at CISR90020 to gain entry to view a contractor scheme and then selected View Customer from the Main Menu the next window visible will be the ‘Scheme Details’ window. From this window you should select the ‘Inhibitions’ tab at the top of the window.

Penalty Inhibitions

The setting of a penalty inhibition signal will prevent the issue of all new late return filing penalties for the period inhibited. (This will also include those penalties that have not yet been issued, see CISR65030 for further information). The penalty will still be created by the CIS system but will remain in this un-issued state as long as the inhibition exists. It follows therefore, that an inhibition signal can only be set in respect of a penalty that has not yet been issued.

The penalty inhibition is set against an individual return and a filing date relating to that individual return. For example, the return for period ending 5 May 2008 could have an inhibition set against filing dates 19 May, 19 June and 19 July. It is possible to set inhibitions against more than one return and more than one filing period at any time.

You should refer to CISR65070 for more in-depth information on Penalty Inhibitions.

Penalty Inhibitions Summary window

Selecting the ‘Inhibitions’ tab will take you to the first of three ‘Penalty Inhibitions’ windows.

The top panel lists the scheme name and Accounts Office reference.

The lower panel titled ‘Tax Year Inhibition Summary’ provides a summary of the total number of penalties inhibited and the number of inhibitions set in each tax year for that scheme.

It is likely that the figure of ‘Inhibitions Set’ will be the same as the figure of ‘Penalties Inhibited’ for each ‘Tax Year Ending’ however if the figure of inhibitions set is higher than the figure of penalties inhibited in each tax year it will be because some of the penalties that are inhibited will not yet have been created (that is, an inhibition can be set against a return up to six months into the future). However this figure will reduce each time the monthly penalty run is done and by the end of the year the two figures will match.

If you wish to view a penalty inhibition that has been set against a return period in one of the tax years listed you should select anywhere in the line of the required ‘tax year ending’ and you will be taken to the second window headed ‘Tax Year Summary’.

[Exit View]

At the bottom right hand corner of this window and every window is the [Exit View] button. If you do not wish to view any further records for this scheme selecting this button will return you to the CIS Main Menu window.

Tax Year Summary window

From this window you will be able to view

  • Details of the total number of penalties inhibited and set against each particular return period. If you then wish to view details of the number of, and reasons for the inhibitions set against any of the thirteen filing instances for a return in that year you should select anywhere on the required ‘Return Period Ending’ row. You will then be taken to the ‘Penalty Inhibitions for Return Period’ window.
  • Whether the contractor scheme is Inactive for the return period shown. A contractor can request inactivity in CIS for a period of six months when they no longer make payments to subcontractors. The CIS system will not issue any further returns during the inactive period. See CISR67000 for further information on Inactivity.

[Back]

Selecting this button will return you to the previous ‘Tax Year Summary’ window.

[Exit View]

At the bottom right hand corner of this window and every window is the [Exit View] button. If you do not wish to view any further records for this scheme selecting this button will return you to the CIS Main Menu window.

Penalty Inhibitions for Return Period window

The next window visible is titled ‘Penalty Inhibitions for Return Period’ and provides the following details for the return requested;

  • Filing date: The filing dates missed for the particular return being viewed. (The completed monthly return must be received by HMRC by the 19th of the month in which the return period ended). If you requested details relating to the Return Period 05/12/2010, the 1st filing date shown will be (19/12/2010), 2nd (19/01/2011), 3rd (19/02/2011) and so on.
  • Inhibition set: An entry of Yes will be shown if an inhibition has been set, otherwise it will be blank.
  • Inhibition Reason; An inhibition can be set for any of the following reasons;
    • Customer complaint
    • Mediated complaint
    • Reasonable excuse – illness
    • Reasonable excuse – bereavement
    • Reasonable excuse – IT failure
    • Reasonable excuse – operational
    • Reasonable excuse – other
    • Appeal Determined – return not required
    • HMRC administrative error
    • Penalty appeal received
    • Compliance intervention
    • Insolvency
    • Other

You may wish to review CISR81020 which gives an overview of what may or may not be accepted as a reasonable excuse. It should be remembered that each case must be considered on its own merits, and that a reasonable excuse can only exist where an exceptional event beyond the control of the customer prevented the completion and submission of the return by the due date.

  • Reviewed – If an entry of ‘YES’ is shown here the penalty administrator will have reviewed the case and considered that the penalty is unlikely ever to be taken. This could be because the date of registration was captured incorrectly or the penalty due has been taken manually by a compliance team as part of a contract settlement. This indicator can however be removed at a later date if it is then decided that the penalty should be issued.
  • Penalty status – Where an inhibition has already been set against a filing period the entry shown will be ‘Created’ meaning the penalty has been created by the CIS system but remains in an un-issued state as long as the inhibition exists.

[Back]

Selecting this button will return you to the previous ‘Tax Year Summary’ window.

[Exit View]

At the bottom right hand corner of this window and every window is the [Exit View] button. If you do not wish to view any further records for this scheme selecting this button will return you to the CIS Main Menu window.

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