The Construction Industry Scheme
(CIS) was significantly changed from 6 April
this year when monthly returns were introduced
for contractors. The CIS300 return details
the payments made to subcontractors and any
tax deducted from those payments. The returns
have to be submitted to HMRC by 19th of the
month.
Since the new CIS was introduced in April
HMRC have not been imposing penalties for the
late submission of the monthly returns but
have advised that they will charge penalties
for late returns from October 2007.
The penalties will apply not only to returns
submitted late from October onwards but also
to any outstanding returns for previous month’s
which have not been received by HMRC by ‘close
of business’ on 19 October 2007. HMRC
have confirmed that they will not be issuing
retrospective penalties for returns which,
although made late, were received by 19 October
2007.
HMRC guidance states that where a contractor
missed filing their return for May 2007 no
penalty will be issued for missing the monthly
deadlines in June, July, August and September,
but a penalty will be charged for the return
not being filed by 19 October and will continue
each month until such time as it is received
by them.
How much is the penalty?
The automatic, interim, penalty of £100
will be issued for each return that HMRC have
not received by 19 October 2007. Further automatic
penalties will be issued for each subsequent
month until the return is received.
Further penalty notices may be issued to contractors
with more than 50 subcontractors when the returns
are eventually submitted to HMRC.
If you would like help with completing the
returns please do get in touch.
Internet link:
HMRC
guidance on penalties and HMRC
on CIS
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