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Revenue brings in new late-filing penalties

Penalties for late or non-filing of monthly Construction Industry Scheme (CIS) returns by contractors will increase from November this year.
Under CIS, contractors are obliged to file a monthly return and account for any sums deducted from subcontractors.From November 2011, the following penalties will apply to returns that are not filed, or are filed late:

  • as soon as the return is late – a 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 per cent of the amount of deductions shown on the return;

  • 12 months after the filing date – a second tax-geared penalty which is the greater of £300 or 5 per cent of the amount of deductions shown on the return.

    If HMRC believes that information has been deliberately withheld, greater penalties may apply. In addition, HMRC will charge interest on any penalty amount paid late.

  • About Fiona Russell-Horne

    Fiona Russell-Horne
    Group Managing Editor across the BMJ portfolio.

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