CISR16172 | The Scheme: primary legislation: section 72A

Section 72A introduces penalties where a person is liable to an amount

• where they knew or should have known there would be a deliberate failure to deduct or pay CIS or PAYE by the person receiving the payment or by another party in the supply chain under FA04/S62A (see CISR16072), or

• where they claim a CIS credit and they knew or should have known there was no CIS deduction made or any deduction made would not be paid to HMRC under FA04/S62B (see CISR16073).

The penalty is up to 30% of the amount determined under section 62A or 62B.

A penalty can be determined within 3 years of the determination under section 62A or 62B becoming final.

A determination becomes final when:

• The appeal period expires, or

• Any appeal or final appeal is fully resolved.

TMA70/S103(4) time limits do not apply to these penalties.