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HMRC internal manual

Compliance Handbook

From
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: 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.

FA09/SCH55/PARA11(5)

FA09/SCH55/PARA12