13 September 2011
Fixed fine of £100 if return misses due date
Changes to penalties for late construction industry scheme (CIS) returns will come into effect from 6 October. They include:
- £100 fixed fine if the return misses its due date of the 19th of each month;
- second £200 fixed penalty if a return is two months late;
- tax-geared penalty if the return is not filed six months after its due date, i.e. the greater of 5% of any deductions shown on the return or £300;
- second tax-geared fine if the return is still outstanding after 12 months. This will be the greater of 100% of any deductions or £3,000 if withholding of information was deliberate and concealed; the greater of 70% or £1,500 if it was deliberate but not concealed; and the greater of 5% or £300 for cases in which information was not withheld;
- upper limit on the amount of fixed penalties charged to new contractors that have not filed their first returns on time; and
- interest on any fine paid late.
The first return affected will be for payments made to subcontractors in the month ending 5 November, which is due on 19 November.
