ECH21165 - CIS until 05-04-07 - Failure to Obtain/Submit CIS24 Vouchers

ECH14430 explains the types of vouchers used under CIS until 05-04-07 and the action to be taken by a contractor / subcontractor.

Where a contractor failed to submit a CIS24 voucher to HMRC he may have become liable to a penalty under S98(1)(b)TMA 1970.

This penalty consists of an initial penalty not exceeding £300 followed by daily penalties not exceeding £60 per day until the failure was remedied.

The initial penalty is determined by the First-tier Tribunal and can be sought even after the failure is rectified. Daily penalties can be authorised by a Grade 6 officer but only as long as the failure continues.

You must consider

• whether the contractor made every effort to obtain CIS24 vouchers from the subcontractor(s)
• whether the contractor notified HMRC if he had problems in obtaining CIS24 vouchers from the subcontractor and
• whether a penalty is appropriate.

Before pursuing this penalty you should

• seek advice from TAA Liverpool (This text has been withheld because of exemptions in the Freedom of Information Act 2000)