From 6th October, CIS contractor monthly returns will be liable to a new penalty regime.
The following penalties will apply to that return and all subsequent months' returns that are not filed or filed late:
- 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
- interest on any penalty paid late
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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.
(CD/GK)
