New Penalties for late CIS returns

From 6 October 2011 Construction Industry Scheme (CIS) contractor monthly returns will be liable to a new penalty regime.

The new penalties are:

  • An initial £100 fixed penalty if the return misses its due date (the 19th of each month);
  • A second £200 fixed penalty if a return is two months late (i.e. £300 in total);
  • A first tax-geared penalty if the return is not filed six months after its due date – the greater of 5% of any deductions shown on the return or £300;
  • A second tax-geared penalty if the return is still outstanding after 12 months – 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; or the greater of 5% or £300 for cases where information was not withheld;
  • There is an upper limit (‘cap’) on the amount of fixed penalties charged to new contractors that have not filed their first returns on time;
  • Plus interest on any penalty paid late.

The first return affected will be for payments made to subcontractors in the month ending 5 November 2011, which is due on 19 November 2011.

How can Lynam Tax Investigation Experts help me?
Lynam Tax partners have a vast amount of practical experience in managing tax investigations and tax enquiries.    We can advise you on the best course of action and if appropriate, help you manage any necessary disclosures, in order to obtain the optimum outcome for you, your business and your family.

*For a free, private, no obligation consultation, call Paul  Lynam today on 0845 643 9997

or Andrew Nutbrown on:  07718 778710