ECH21195 - CIS until 05-04-07 - Failure to Surrender a Certificate

ECH14410 describes the types of certificates issued under CIS until 05-04-07.

Regulation 28(2) of the The Income Tax (Subcontractors in the Construction Industry) Regulations 1993 requires a subcontractor to

• surrender his certificate to an authorised officer of the Board whenever
• served with a notice to surrender the certificate or
• called upon by an authorised officer of the Board to surrender it.

This regulation applies even if a certificate has expired or been cancelled.

Contractors and subcontractors were advised to destroy all documents relating to CIS until 05- 04-07 when the CIS (Reform) was introduced on 06-04-07. This includes certificates so the occasions where a certificate is required to be surrendered should be rare from 06-04-07.

A subcontractor who fails to surrender a certificate when required to do so may become liable to a penalty to an initial penalty not exceeding £300 followed by daily penalties not exceeding £60 per day until the certificate is surrendered. The provision for this penalty is S98(1)(a) TMA 1970.

The initial penalty is determined by the Commissioners. Daily penalties can be authorised by a Grade 6 officer.

Neither the initial nor daily penalties can be sought once the failure is remedied.

Whenever a CIO considers this penalty appropriate the CIO should

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