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HMRC internal manual

Compliance Operational Guidance

From
HM Revenue & Customs
Updated
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Supporting Guidance: employer compliance: guidance by subject: penalties: CIS until 05-04-07 - unlawful disposal or possession of CIS documents

CIS until 05-04-07 used various documents - vouchers, certificates, registration cards.

Contractors and subcontractors were obliged to take reasonable steps to make sure the safety of CIS documents.

A contractor or subcontractor who

  • disposed of a CIS document unlawfully or
  • possessed a CIS document unlawfully

may be liable to a penalty not exceeding £3000. The provision for this penalty is in ICTA1988/S561(11).

S561(11) applies to disposal or possession of legitimate CIS documents. It is not applicable in instances where a false document has been used. If you discover that false documents have been used, for example a manufactured registration card then a penalty may arise under S98(2) TMA1970. This provides for a penalty not exceeding £3,000.

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.

Where you identify the unlawful disposal or possession of CIS documents or the use of false documents you must

  • gather all of the information possible to establish the facts.

(This content has been withheld because of exemptions in the Freedom of Information Act 2000)

(This content has been withheld because of exemptions in the Freedom of Information Act 2000) COG904570.

Where a penalty is appropriate you can seek advice from TAA Technical.

TAA will provide guidance on the appropriate amount of penalty to be sought - see COG904770.