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HMRC internal manual

Debt Management and Banking Manual

Debt and return pursuit: CIS: the IDMS automatic process: introduction


Initial action

IDMS receives details of

  • outstanding and late submitted returns from CIS
  • outstanding penalties monthly from SAFE.

When the work items are received, IDMS

  • out-sorts work items containing signals that are not appropriate for automatic action for clerical review using existing rules and
  • handles the cases in accordance with existing guidance.

CIS Returns

Although there have been changes to CIS penalties, which can be seen below, the CIS return process has not changed.

Schedule 55 CIS Penalties

Schedule 55 CIS penalties were introduced on the 10th October 2011. The first penalties under Schedule 55 were raised on 29th November 2011 for the return period 5th November 2011. Where the penalty has not been paid or stood-over a work item will be created on IDMS for the first time around the 29th December 2011.

There will be 4 work items on IDMS created to accommodate Schedule 55 CIS penalties

  • CIS Fixed Penalty
  • CIS Tax Geared Penalty
  • CIS Fixed Penalty Interest
  • CIS Tax Geared Penalty Interest (will be displayed on the IDMS screen as CIS Tax Geared Pen Int.)

Linking rules

Where there are no existing open CIS penalty work items a first reminder letter will be issued. Once the reminder letter has been issued the work item will follow the relevant collection strategy.

Where there are existing open CIS penalty work items any new work items will link together and follow the relevant collection strategy in place at the time.

Section 98A CIS penalties

Section 98A penalties were raised between October 2007 and October 2011 where the CIS return was submitted late or not submitted all.

The last automatic Section 98A penalty was issued on October 29th 2011 for missing or late submitted returns for return periods 5th October 2011 and earlier. The last Section 98A CIS penalty will be sent to IDMS on or around 29th November 2011.

No further new automatic Section 98A penalties will be issued after 29th October 2011.

Amendments to penalties already raised will continue to be issued, where necessary, but not where the amendment will increase the penalty charge.

All Section 98A CIS penalties that have already been issued will remain due and payable until they are paid in full or an appeal has been received and accepted and should be pursued following current guidelines.