A number of contractors in the construction industry have received late-filing penalties even though they posted their monthly returns in plenty of time to reach HMRC by the due date of 19th of the month.
The Revenue examined postmarks on the envelopes of about 300 returns that were delivered to their CIS processing office in the days immediately following 19 February, to see if there was a pattern.
HMRC found that many returns were received late because contractors had:
- failed to put any postage on the envelope
- not paid sufficient postage for the size of the envelope
- posted returns too late to have a realistic chance of reaching HMRC by the 19th of the month
It is apparent that some contractors are unaware that putting a standard, 34 pence, first class stamp on the envelope does not cover the correct postage due for an A4 envelope that Royal Mail classes as large letter post.
The minimum postage to send a large letter envelope by first class post is 48 pence and returns weighing more than 100 grams will cost more than this.
Returns with the incorrect stamp are surcharged and delivered separately.
They are then much more likely to arrive at the CIS processing centre after the 19th when they will incur a late-filing penalty.
HMRC 'cannot emphasise enough' that, in order to meet the deadline, contractors must ensure that the returns are posted in good time and the right postage is paid.
