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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 - failure to inspect a registration card

COG909520 explains when a contractor had to inspect a registration card and what information from the card the contractor was required to retain.

A contractor who failed to inspect a registration card may be liable to a penalty not exceeding £3,000 under Section 566(2B) ICTA 1988.

Where you discover that a contractor

  • failed to inspect a registration card(s)

you must

  • establish the extent of the failure and
  • fully explore the reasons for the failure COG906110.

You must

  • remain aware that the reasons for failing to inspect a registration card could range from a lack of care in operating the CIS to collusion in identity fraud.

Before seeking a penalty for failure to inspect a registration card you can

contact TAA Technical - see COG904770.