Business Link is reminding contractors across the East Midlands
about the important changes to penalties for late Construction
Industry Scheme (CIS) returns which come into effect next
month.
From 6 October 2011, CIS contractor monthly returns will be
liable to a new penalty regime:
• a £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;
• a 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;
• an upper limit ('cap') on the amount of fixed penalties
charged to new contractors that have not filed their first returns
on time; and
• 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.