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HMRC internal manual

Debt Management and Banking Manual

Debt and return pursuit: CIS: contractor’s response: cessation of limited companies and the effect on CIS penalties

Although a cessation date may be present on a record, the CIS system does not prevent CIS penalties being issued where a CIS return still remains outstanding for return periods before the cessation date.

Where the penalties have already been issued

Before transferring the case to the Remissions Write Off Office, check the IDMS system and confirm that none of the work items are allocated to any of the CIS ‘System Roles’ below.

  • CIS Holding
  • CIS 1st Reminder
  • CIS 1st Reminder Onl
  • CIS 2nd Reminder
  • CIS 2nd Reminder Onl.

Note: When linking work items, please be aware that the IDMS system only enables the linking of up to 300 work items to a master reference.

If the work item is allocated to any of these CIS System Roles, in order to stop penalty reminders being issued, you must use the Record Actions function to move the work items to a clerical role.

To move a work item out of a CIS System Role to a clerical role

  • Use Record Actions to write an appropriate action history note; for example, “Moved from auto role to prevent issue of letter”.
  • Click on C/W CIS in the ‘Move To’ drop-down menu.
  • Click [OK].
  • Change the proposed

    • Next Action to “Pot Remission”
    • BF date to a date one month in the future.

Preventing the issue of further penalties

To prevent the issue of further penalties:

  • use the “Maintain Penalty Inhibition” function on the CIS system (available to Officer level and above using the CISR Pursuit Manager role)
  • issue an eForm to the Employer Office using destination office ‘NICEO Contractor Maintenance’ and referral reason ‘CIS – Penalty Vacating’ requesting discharge of penalty
  • note ETMP and IDMS of your action and change the next action to ‘A/W Clearance’ with a 28-day BF.