ECH21190 - CIS until 05-04-07 – Submission of Inaccurate or Incomplete CIS25 Vouchers

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

ICTA1988/S566(2C) provides for

• a penalty not exceeding £3000

where a contractor has

• failed to properly inspect a registration card, and has as a result
• submitted inaccurate or incomplete CIS 25 vouchers and they are
• inaccurate or incomplete in any material respect.

If the contractor

• inspected a valid registration card, or
• a document that he had reasonable grounds to believe was a valid registration card

and

• took reasonable steps to ensure that the vouchers were correct

a penalty will not be sought in accordance with S566(2D).

Whenever you identify that a contractor has submitted inaccurate or incomplete CIS25 vouchers you must

• establish the extent of the errors / omissions
• explore the reasons for the errors / omissions and
• consider whether a penalty is appropriate.

Before seeking this penalty you can contact TAA Liverpool for advice (This text has been withheld because of exemptions in the Freedom of Information Act 2000)

Where the contractor’s actions have resulted in an incorrect CIS 36 being submitted you should

• consider penalties under S98A4 TMA 1970 ( ECH21040).