CIS late filing penalties

The penalties for late CIS contractor monthly returns are changed from 6 October 2011.

Penalties will now be charged as follows:

·         £100 for the initial failure to meet the due date of 19th of the month.

·         A further £200 if the return is still outstanding two months after the due date.

Then in addition the tax geared penalties kick in  

·         The greater of 5% of any deduction shown on the tax return or £300 if more than six months late.

·         A further tax geared penalty as above if the return is more than 12 months late.  

For new CIS contractors who have not sent any previous returns and are filing your first returns late there will be an upper limit of £3,000 of the total fixed penalties (£100 and £200) that may accrue. The upper limit does not apply to any tax geared penalty unless the minimum penalty of £300 applies.