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HMRC internal manual

Compliance Handbook

HM Revenue & Customs
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Penalties for Failure to File on Time: Types of penalties for failure to file on time: CIS returns: 6 month further penalties

This page only applies to the Construction Industry Scheme (CIS).

A person is liable to a 6 month further penalty if their monthly return (CIS300) remains outstanding 6 months after the penalty date, see CH61160.


ABC Contractors Limited was due to file its CIS300 on 19 February 2013. This is the filing date. ABC Contractors Limited did not file the return by the filing date, and was liable to an initial fixed penalty of £100 on 20 February 2013, the penalty date.

The CIS300 is still not filed 2 months after the penalty date and so ABC Contractors Limited is liable to a second fixed penalty of £200 on 20 April 2013.

ABC Contractors will be liable to a 6 month further penalty on 20 August 2013 if the CIS300 is still not filed by this date.

The penalty is the greater of

  • 5% of the liability to make payments (CIS deductions) which would have been shown in the return, and
  • £300.

See CH63560 for how to quantify a tax-geared penalty when the return has not been filed.

Note that the 5% penalty is calculated on the liability of CIS deductions that would have been shown in the return if it had been filed on time, and is not reduced by any amount that has been paid towards that liability.

The 6 month further penalty differs from the 12 month further penalty, see CH62400+, because the 6 month further penalty

  • has no reduction for disclosure, and
  • does not depend on the type of behaviour.

See CH62900+ if the outstanding return relates to a partnership.

If the information in the return relates to persons registered for gross CIS payments and the return has not been filed for 6 months from the penalty date, see CH62500.