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HMRC internal manual

Debt Management and Banking Manual

From
HM Revenue & Customs
Updated
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CIS: penalties: Section 98A penalties - the soft landing period

Note: The following section only applies to Section 98A CIS penalties.

There is NO soft landing period for Schedule 55 CIS penalties.

Penalties for the soft landing period

To allow contractors to accustom themselves to the CIS system no penalties were charged for returns due between the 19 May 2007 and the 19 September 2007 (the soft landing period).

At the end of the soft landing period any returns due from May 2007 to October 2007 that were still outstanding receive a penalty but were not charged retrospectively for the period between April 2007 and October 2007. The contractor was issued with a penalty for each return not submitted appropriate to the number of months the return had been outstanding.

Penalties after October 2007

At the end of the soft landing period (29/10/07) any returns due from May to October 2007 that were still outstanding will receive a penalty. The penalties were issued as if they had been issued during the soft landing period. This was so that any returns from May 207 that were still outstanding 12 months later would receive a final penalty.