CONSTRUCTION INDUSTRY SCHEME (CIS)

Penalties for late filing or non filing of contractor monthly returns are changing after October 2011.

The first return affected by the changes to late-filing penalties is the return for the month ending 5 November 2011.

The following penalties will apply to that return and to all subsequent months’ returns that are not file, or are filed late, for as long as the return is outstanding.

• Immediately the return is late – fixed penalty of £100
• Two months after the filing date – a second, fixed penalty of £200
• Six months after the filing date – a tax-geared penalty which is the greater of £300 or 5% of the amount of deductions shown on the return.
• Twelve months after the filing date – a second tax-geared penalty which is the greater of £300 or 5% of the amount of deductions shown on the return. 
• If HMRC believe that information has been deliberately withheld, greater penalties may apply.

Extract from HMRC notice.
For more information or assistance contact Neale Accounting.