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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 submit CIS23 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 CIS23 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 is 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 an Authorising Officer but only as long as the failure continues.

You must

  • consider whether a penalty is appropriate.

Before pursuing this penalty you should seek advice from Tax Administration Litigation & Advice - see COG904770.