CIS Monthly Returns - Penalties to be imposed for late returns from October
View the previous news item for Construction Industry Scheme
11 October 2007
Although the new Construction Industry Scheme was introduced on 6 April 2007, the penalty regime was deferred for 6 months to allow contractors to become familiar with the requirements of the new scheme, in particular, the need to submit returns on a monthly basis. To avoid becoming liable for a penalty, all returns due since April 2007 must be received by HMRC by 19 October.
From 19 October, HMRC will start to charge penalties for all CIS monthly returns not received by the due date, i.e. the 19th of every month. This includes returns, including nil returns, that should have been filed between May and September 2007. The late filing penalty is a fixed penalty of £100, plus £100 for every 50 subcontractors beyond the first 50. For example:
No. of Subcontractors on Return
Penalty for Each Month
Fixed Penalty
Additional Penalty
Total
0
£100
£0
£100
10
£100
£0
£100
55
£100
£100
£200
110
£100
£200
£300
620
£100
£1,100
| £1,300
| | | | | | | | | | | | | | | | | | | | | | | | | |
The penalty is charged for each month that a return has not been received. So, if the return due on 19 September 2007 is not received by 19 October 2007, penalties will be incurred for both September and October.
HMRC's statistics show that many contractors have either regularly been later in filing or not filed at all. The following Table gives provisional figures as at 20 September 2007.
Filing Date
Returns Due
Returns Received
Returns Received by Due Date
Total
Percentage
Total
Percentage
| 19 May
| 176,000
156,000
89%
104,000
59%
| 19 June
| 171,000
148,000
87%
95,000
56%
| 19 July
| 169,000
144,000
85%
82,000
49%
| 19 August
| 169,000
124,000
73%
100,000
59%
| 19 September
| 166,000
125,00
75%
95,000
| 57%
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
The New CIS Helpline telephone number is 0845 366 7899 and lines are open 8am to 8pm Monday to Sunday.
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Further information:
HMRC warn of CIS penalties
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