Changes to CIS Penalties by HMRC

If you operate under the Construction Industry Scheme (CIS), HM Revenue and Customs (HMRC) are bringing new CIS penalties into effect from 6 October 2011.  These are as follows:

Initial failure to meet due date

If a return is not received by HMRC by its due date of the 19th of the month, a penalty of £100 will be charged.

Return still is there a generic cialis available in the us outstanding two months after due date

If the return has still not been received by HMRC two months after its due date, a further penalty of £200 will be charged.

Return still outstanding six months after due date

If the return is still outstanding six months after its due date, a tax-geared penalty becomes due, which is the greater of 5% of any deductions shown on the outstanding return or £300.

Return still outstanding twelve months after due date

If the return is still outstanding twelve months after its due date, a second tax geared penalty becomes due as described below.

• If HMRC determines that withholding information on the return has been deliberate and concealed, the penalty is the greater of 100% of any deductions shown on the return or £3,000.
• If HMRC determines that withholding information on the return has been deliberate but not concealed, the penalty will be the greater of 70% of any deductions shown on the return or £1,500.
• In all other cases, where HMRC determines that information on the return has not been withheld deliberately, the penalty will be the greater of 5% of any deductions shown on the return or £300.

Further information can be found here.

Given the increasing severity of the late filing penalties, we would advise that any contractors deal with their monthly returns promptly.