CISR82610 - Compliance: Regulation 13 determinations: raise determination

This action guide explains the steps you should take to raise a determination on a contractor under Regulation 13. Note that these determinations must be raised by the Processing Office dealing with the contractors SA/CT record.

  1. Issue a warning letter to the contractor along the lines of the sample letter set out immediately below. You should allow a period of 30 days from that date of the warning letter to allow the contractor to respond before making the determination under Regulation 13.

Note: This sample is not suitable for use in connection with subcontractor/contractor disputes.

"I have reason to believe that you engage subcontractors within the scope of the Construction Industry Scheme and that you have made payments without making the necessary deductions, or you have made deductions from payments made to subcontractors but failed to pay the deductions over to HMRC. The relevant legislation is set out in the Finance Act 2004, sections 57-77 and Schedules 11 and 12.

In view of this, I intend to raise a determination under Regulation 13(2) of Statutory Instrument 2005, No 2045 as detailed below.

(Year of determination)

(Amount of determination)

(Reason for determination)

Any comment or response you might wish to make at this stage should be addressed to me at the address above"

    2. If the warning results in a satisfactory response and the matter can be resolved without the need for a determination, take no further action.

If the contractor accepts that the appropriate deduction was not made but maintains that there is a good reason for that or that the subcontractor has accounted for the liability, you should consider the case for a direction under Regulation 9 (CISR83000).

If there is no satisfactory resolution after the warning and there is no case for a Regulation 9 direction to be made you should proceed to arrange for the issue of a Regulation 13 determination.

(This content has been withheld because of exemptions in the Freedom of Information Act 2000)

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