CIS PENALTIES
Current penalties under schedule 55 FA 2009, effective as of October 2011
|
Description |
Penalty Value |
|
Failure to submit monthly return by 19th month |
£100 |
|
Monthly return is still outstanding after 2 months |
£200 in addition |
|
Monthly return outstanding after 3 months |
£300 in addition* |
|
Monthly return outstanding after 6 months |
£300 in addition* |
|
Monthly return outstanding after 12 months |
£300 in addition* |
|
Failure to provide CIS records to HMRC for inspection |
£300 +£60 per day |
|
Making a false statement in order to obtain gross payment status |
Up to £3,000 |
|
For information deliberately withheld from HMRC |
Up to 100% of CIS deductions |
|
For information negligently withheld from HMRC |
Up to 70% of CIS deductions |
*or 5% of the CIS deductions on form the return (whichever is higher)
In addition HMRC can add up to £3000 per monthly return submitted if you incorrectly tick the self-employed status declaration when your subcontractors should have been employed.
These penalties also apply to NIL returns.