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HMRC internal manual

Construction Industry Scheme Reform Manual

Late Return Automatic Penalties: Logging an Appeal

CISR65600 Action Guide contents

Logging the appeal

The appeal made to HMRC should be logged on the day of receipt. This is especially important where the appeal cannot be settled immediately as the penalty charge remains collectible until the appeal is recorded on the system, at which time it is then suspended. If DMB have already taken steps to pursue the charge CISR will tell them to cease recovery action.

However where an appeal is made against a penalty, but the appellant has not stated any grounds for their appeal, then this should not be logged on to CISR. Instead, you should write to the customer to ask them to tell us on what grounds they are making their appeal.

An appeal against a late return penalty can be submitted by the contractor, or an agent acting on their behalf. In this case an agent can mean a customer level agent, a scheme specific agent or a third party. If the appeal is submitted by someone other than the customer, when logging the appeal, you should examine the Action Guide at CISR65610, to be aware of the entries to be made within the ‘Identify Customer’ window before proceeding to authenticate the scheme and then log the appeal.

If you are unable to identify the contractor scheme reference, or the particular penalty or penalties against which the contractor wishes to appeal from the details quoted, you should contact the contractor by telephone to obtain sufficient information for the appeal to be considered and logged. Bear in mind that you should log the appeal only against any penalties issued up to the date the contractor dated their appeal. If the contractor now wishes to appeal against any further penalties issued after the date of his original appeal, then they will need to submit a separate appeal against these later penalties. To access the functionality to log an appeal you will need to hold the CISR Processor, CISR Process Manager or CISR Penalty Administrator roles.

On receipt of an appeal you should ensure that the conditions listed at CISR65100 have been satisfied, before going on to record onto the system that an appeal has been received against one or more particular penalties. An acknowledgement of the appeal (CIS320) will be issued and SAFE will be notified that the charge has been suspended. Where the appeal is created and determined on the same day only the determination letter will be issued.

CISR will create a Work item on the PEGA system for every appeal logged (except where the appeal is logged and determined on the same day), and you will need to take action regarding this Work item depending on how the appeal is to be treated. See CISR65600 onwards for the various actions possible, and also CISR95650 regarding the action to take on the Work item.

The Action Guide at CISR65610 tells you how to log a Late Return penalty appeal.

After an appeal has been recorded on to CISR the penalty cannot then be vacated if it is found that the penalty was incorrectly issued, see CISR65150 for further information about vacating a penalty.

Following the introduction of CIS penalties under FA09/SCH55 from 29th October 2011, there is no change to the process for logging a penalty appeal. The only difference is that CIS penalties issued under TMA70/S98A and FA09/SCH55 will now appear together in the ‘Create Penalty Appeal’ window. It will be possible to log appeals against CIS penalties issued under either or both of these legislative requirements at the same time.

You will not be able to log an appeal made against penalties that are ‘Withheld’. This is the case even if the penalty is ‘withheld’ under the capping provisions.