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HMRC internal manual

Compliance Operational Guidance

Supporting Guidance: employer compliance: guidance by subject: penalties: CIS until 05-04-07 - submission of incorrect 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.

A contractor who

  • fraudulently or
  • negligently

submitted an incorrect CIS23 voucher to HMRC may become liable to a penalty under S98(2)TMA 1970.

This penalty is an amount not exceeding £3,000.

Wherever you identify that incorrect CIS23 vouchers have been submitted you must

  • establish the facts that resulted in the submission of an incorrect voucher COG906110 and
  • consider whether a penalty is appropriate.

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