CISR83040 - Compliance: Regulation 9(5) directions: co-ordination with Regulation 13(2) determinations
| CISR83600 | Action guide contents |
Where the contractor does not dispute the obligation to make a deduction and the failure to do so, any representations for a direction under Regulation 9(5) can still be considered until a Regulation 13(2) determination is finalised. Once a Regulation 13(2) determination has been finalised it will not be possible to consider a direction under Regulation 9(5). A Regulation 13(2) determination will be considered finalised when it is not appealed or is no longer within the time limit for an appeal, or an appeal has been concluded.
Where a Regulation 13(2) determination is issued and a Regulation 9 is not raised as a ground for appeal, there is no requirement for a Regulation 9 to be considered.
Where the contractor disputes the obligation to make a deduction, a Regulation 13(2) determination should be issued.
Example
A contractor may initially contend that no deduction was due because the payment was for an operation outside the scope of the Scheme.
In this case the first step is to determine whether there was a legal duty to apply the Scheme to the payment in question. This may be achieved either by direct agreement between the contractor and HMRC without recourse to issuing a determination under Regulation 13(2), in which case a direction under Regulation 9(5) may then be considered as to whether the failure can be viewed as an ‘error made in good faith’.
It may be necessary to issue a determination under Regulation 13(2) to settle a ‘scope’ issue as the matter may go forward either for an internal review, or be heard before the Tribunal.