ECH21185 - CIS until 05-04-07 – Failure to Inspect a Registration Card

ECH14405 explains when a contractor had to inspect a registration card and what information from the card the contractor was required to retain.

A contractor who failed to inspect a registration card may be liable to a penalty not exceeding £3,000 under Section 566(2B) ICTA 1988.

Where a CIO discovers that a contractor

• failed to inspect a registration card(s)

The CIO must

• establish the extent of the failure and
• fully explore the reasons for the failure ( ECH8045)

CIOs must

• remain aware that the reasons for failing to inspect a registration card could range from a lack of care in operating the CIS to collusion in identity fraud.

Before seeking a penalty for failure to inspect a registration card the CIO must contact TAA (Newcastle) for advice. (This text has been withheld because of exemptions in the Freedom of Information Act 2000)