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 fails to submit a CIS24 voucher to HMRC he may 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 is remedied.

The initial penalty is determined by the Commissioners 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.

CIOs 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 the CIO should

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