ECH21075 - Penalties: Abatement for Co-operation

The abatement should reflect the extent to which the employer co-operates with the review to bring it to a speedy conclusion.

Thus the starting point is the time taken to reach a conclusion and how the employer influenced that. You should bear in mind that complex cases will inevitably take longer. In these cases the time taken is often influenced by both the employer and you.

Consideration should be given to the following features.

• Making early appointments and keeping them.
• Supply of records and information.
• Truthfulness and accuracy of answers to questions with all the relevant facts brought to light.
• Necessity for formal action including Commissioners hearings to force progress.

If any employer has a genuine disagreement, for example in a status dispute, this is not a lack of co-operation. Neither is an appeal for assistance from a third party, including the local MP.

But where you can show a deliberate policy of obstruction, accompanied by clear evidence of attempts to mislead the third party as well as us, that is plainly lack of co-operation.

Any delay or lack of co-operation by an agent is deemed to be the employers own. If you believe

• a case is delayed due to an agent (or the agent claims the client is tardy)

they should

• write direct to the employer (with a copy to the agent)
• give a reminder of the terms of EC/FS4 ECH8027 and
• request quicker and more effective co-operation.

If a complaint ensues, the reply should be that HM Revenue & Customs are bound, in fairness, to remind employers of the consequence of delay. The delay could affect any penalty which may be sought.

See also ECH21080.