CISR85130 | CIS fraud measures: S72A Penalties: When is a penalty chargeable

Where FA04/S62A (see CISR85020) or FA04/S62B (see CISR85040) apply, the person is liable to a penalty.

The maximum penalty that can be charged is 30% of any amount determined under SI2005/2045 Regulation 13A.

In general, you should aim to issue the penalty at the same time as the Reg 13A determination. Both notices can be sent at the same time.

There may be occasions when it is expedient to delay issuing the penalty. One example might be when alternative dispute resolution (ADR) may be suitable. In these circumstances it may be desirable to await the ADR meeting before determining HMRC’s position on the penalty. The reason for this is that the ADR may entail new arguments being put forward or further evidence being provided by the business. HMRC should consider these points before issuing any penalty.

TMA70/S100B applies to penalties raised under FA04/S72A but the TMA70/S103(4) time limits do not apply.

A penalty cannot be issued more than three years after the date on which the reg 13A determination became final. A determination is considered final once the period for appeal against the determination has passed or any appeal is finally determined.