ECH14920 - Construction Industry Scheme: Exception Handling - Settling Irregularities

You must adopt the same approach to settling irregularities arising from an exception (CISER or exception report) as you would adopt had a full or aspect compliance check been conducted ( ECH22000 onwards).

Consideration of a penalty must be taken in accordance with the guidance at ECH21000 onwards. Where a penalty offence has been committed HRA advice and factsheets EC/FS 3 and EC/FS 4 must be issued at the appropriate time ( ECH8027, ECH8028).

All of our settlements for money have to be concluded with a legally enforceable charge. There are two ways of putting in place that legally enforceable charge

• by contract law or
• through the use of statutory provisions

Most underpayments arising from an exception, including the interest thereon and any penalty due will be settled by contract law in the form of a letter of offer and letter of acceptance ( ECH21500 onwards)

On the occasions where a contract settlement cannot be agreed you will have to take formal action to recover the amounts due.