Penalties for Failure to File on Time: Types of penalties for failure to file on time: CIS returns: Gross payment only
This page only applies to the Construction Industry Scheme (CIS).
Where a CIS return only relates to persons registered for ‘gross payment’, within the meaning of Chapter 3 of Part 3 of FA 2004, there would be no liability on which to calculate a tax-geared penalty after 6 months, see CH62380, or 12 months, see CH62480. In these cases the person is liable to a fixed amount penalty.
The following penalties apply for returns only relating to gross payments.
- An initial fixed penalty of £100 applies on the penalty date, see CH62340.
- A second fixed penalty of £200 applies 2 months after the penalty date, see CH62360.
- The 6 month further penalty is the minimum £300, because there is no liability resulting from the return on which to calculate the 5% penalty, see CH62380.
The 12 month further penalty depends on whether, by failing to deliver the return, the person deliberately withholds information relating to persons registered for gross payment.
If information is deliberately withheld, it can be either
- ‘deliberate and concealed’ - if the person deliberately withholds information and makes arrangements to conceal the fact that the information has been withheld, the penalty is £3,000, or
‘deliberate but not concealed’ - if the person deliberately withholds the information but does not make arrangements to conceal the fact that the information has been withheld, the penalty is £1,500.
- If information is not deliberately withheld the penalty is £300.
There is no reduction to the penalty if the person makes a disclosure, see CH63100.