From October 2011 the late submission Construction Industry Scheme monthly returns will result in revised penalties. The penalties are as follows:
- a basic penalty of £100 for failure to meet due date of the 19th of the month
- where the failure continues after two months after the due date, a further penalty of £200 will be charged
- after six months an additional penalty will be due, rising to the greater of 5% of the tax or £300
- after 12 months a further penalty will again be due being the greater of £300 or 5% of the tax but, where the withholding of information is deliberate and concealed, it will be 100% of the tax (or £3,000 if greater) and where information is withheld deliberately 70% of the tax (or £1,500 if greater).
Please get in touch if you would like help or advice on the Construction Industry Scheme.
Internet link: HMRC guidance on CIS penalties