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HMRC internal manual

Debt Management and Banking Manual

CIS: Pursuit action: Penalty inhibition signal

CIS penalty inhibition signal

This function will allow a user to prevent the issue of all new automatic filing penalties for the period inhibited. This will also include those penalties that have not yet been issued due to the RLS signal being set.

The CIS penalty will still be created by the CISR system, but will be withheld in CISR as long as an inhibition exists. It therefore follows that an inhibition signal can only be set in respect of a penalty that has not yet been issued. A withheld penalty is not notified to SAFE.

The penalty inhibition is set against an individual return and a filing date relating to that individual return. For example, the return for period ending 5 May 2008 could have an inhibition set against filing dates 19 May, 19 June and 19 July. It is possible to set inhibitions against more than one return period and more than one filing period at any time.

Note - the number of future return periods where a penalty inhibition can be set is restricted to the current return period and six future return periods. CY+1 year return periods will only become visible on the CISR system six months into the current year. If you try to select a return period further than six months into the future an error message will be displayed.

Where the penalty inhibition signal is being unset all the affected penalties will be released from CISR and notified to SAFE and a penalty charge notice will be issued, unless one of the following signals is present:

  • RLS
  • Insolvent
  • Deceased
  • ‘Inhibit output’.

The penalty inhibition signal may be used in conjunction with the Return Period Exemption signal. More information on the Return Period Exemption signal and how to use it can be found at DMBM524555.

How to set / unset the penalty inhibition signal

To set or unset the signal you will need the CISR Pursuit Manager role, available to managers Band O and above. You should access it via My Workplace.

From the CIS Main Menu

  • select ‘Maintain Penalty Inhibition’

You will now see the Maintain Penalty Inhibition screen:

  • select the tax year ending where you want to set/unset penalty inhibition
  • select a return period
  • select the return filing dates where you want to inhibit penalties by placing a tick in the appropriates box(s)
  • select the ‘Update inhibitions’ button

On the next screen you can see all the return period and filing dates you are about to set/unset the inhibition signal. See Step 1 to set the penalty inhibition and Step 2 to unset a penalty inhibition.

Step 1

To set the penalty inhibition signal

  • select ‘Yes’ radial button for ‘Inhibition set’
  • select the most suitable option from the drop down menu for the ‘Reason’
  • put a tick in the check box if it us unlikely the inhibition is ever to be unset; you can leave this tick box blank if you are unsure.

Check your actions and if they are correct;

  • select ‘Accept’
  • select ‘OK’

Step 2

To unset the penalty inhibition signal

  • select ‘No’ radial button for ‘Inhibition set’ (If there is a tick in the ‘This penalty has been reviewed and is considered unlikely ever to be taken’ check box you need to uncheck this box first before you can change the ‘Inhibition set’ radial button
  • select the ‘Accept’ button
  • select the ‘Confirm’ button.