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HMRC internal manual

Construction Industry Scheme Reform Manual

From
HM Revenue & Customs
Updated
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Late Return Automatic Penalties: Reissuing a Penalty

CISR65600 Action Guide contents
   

 

Penalty notices will be issued to a scheme with a copy to the agent if they have been authorised to receive output. Before issue, the system runs a check to ensure that the penalty can be issued. If the address to which CIS correspondence is issued is RLS the penalty is stored on the system until an acceptable address becomes available.

 

The penalty will remain in a state of ‘Withheld’ on the system until the address is updated or the RLS (or penalty inhibition) signals are removed. It is likely that notification of a new address will come from EBS, the customer or their authorised representative. At that point the system will move the penalty from its ‘Withheld’ state to an ‘Issued’ state and pass the penalty to SAFE for it to be issued to the customer. Finally Contact History will be updated to show the charge has been notified to SAFE.

Where the original penalty notice issued is

  • Returned RLS during the 30 day appeal period, and
  • Remains unpaid at the end of the 30 days.

SAFE will set the RLS signal and pass the charge to IDMS for processing. When the IDMS operator obtains a new address and has updated EBS they will then make a phone call to the owning office requesting the re-issue of the penalty notice. The Appeals Administrator should then use function ‘Reissue Penalty’ to re-issue the penalty. This process is explained in the Action Guide at CISR65640.

After 28th October 2011, it will not be possible to use CISR to re-issue a CIS penalty issued under TMA70/S98A for return months up to and including 5th October 2011. From that date you will only be able to re-issue CIS penalties issued under FA09/SCH55 for the return months ended 5th November 2011 or later.

A contact may be made by the contractor or authorised representative requesting the re-issue of a penalty notice, claiming that the original notice was never received. A penalty notice can only be re-issued using the function ‘Reissue Penalty’. If an RLS signal was previously set, then either a new address will need to be noted on EBS, or the RLS signal removed if incorrectly set before the ‘Re-issue function can be used. Where the penalty is re-issued in this way a new 30 day appeal period runs from the date of the reissued notice but the due and payable date remains as per the original penalty notice.

If the claim made by the contractor or their representative is that the penalty notice was not received but the address to which the notice was sent remains the same and a duplicate notice is required, if you are satisfied that the original notice was not received then you can re-issue it as above. There is no functionality within CISR to issue a duplicate or copy of the original notice.

If the contractor or their representative makes contact with the Contact Centre requesting a duplicate copy of the penalty notice the advisor should take full details of the reason for the request and pass this information to NICEO by sending an i-form through the Work Area Mailbox.