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HMRC internal manual

Compliance Operational Guidance

Supporting Guidance: employer compliance: guidance by subject: penalties: CIS until 05-04-07 - failure to obtain/submit CIS24 vouchers

COG909570 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 failed to submit a CIS24 voucher to HMRC he may have 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 was remedied.

The initial penalty is determined by the First-tier Tribunal 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.

You must consider

  • whether the contractor made every effort to obtain CIS24 vouchers from the subcontractor or subcontractors
  • 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 you should seek advice from Tax Administration Litigation & Advice - see COG904770.