How to do a compliance check: compliance check series of factsheets: when to issue CC/FS18b penalties for failure to file returns on time - Construction Industry Scheme (CIS)
Factsheet CC/FS18b tells the person:
- about the penalties that we may charge under Schedule 55 FA 2009 for late CIS monthly returns with a filing date of 19 November 2011 or later
- when and how we charge penalties when a return is late
- when we will not charge a penalty
- how we work out the amount of any penalties that we may charge
- when we may cap the penalties
- when we may charge a higher behavioural penalty when a return is more than 12 months late and how we work out the amount
- why they should tell us about information that they have withheld before we find out about it
- about their rights.
You must issue factsheet CC/FS18b as soon as you establish that:
- there has been a failure to file CIS monthly returns on time for tax months ended 5 November 2011 and later, and
- automated penalties have not already been issued by CISR for all the returns, or
where automated penalties have been issued but CISR has only charged a £300 penalty when a return was more than 6 and 12 months late and you intend to either
- increase the 6 and 12 month penalties because the total CIS deductions which should have been shown on the return means the penalty should be greater than £300, or
- increase the 12 month penalty because you believe the person knowingly withheld information which would help you assess the CIS deductions which should have been shown on the return.
If you are in a meeting you must give the person time to read factsheet CC/FS18b and make sure they are fully aware of the potential reductions for telling, helping and giving. You must also tell the person about the benefits of making an unprompted disclosure of anything else that they know is wrong.
If you are issuing factsheet CC/FS18b because you believe a penalty may be due you must also issue factsheet CC/FS9 The Human rights Act and penalties, following the guidance at CH202275.
Penalties for failing to file returns on time are explained fully in CH60000.
For guidance on making manual CIS penalty assessments see COG914297.