CIS Construction industry scheme CIS300 monthly returns
£100 per month late for each of the monthly returns. This can quickly run out of hand and there is virtually no argument which will be accepted in mitigation. Penalties still apply to nil returns filed late, reduced to £100 when the return is filed. You can agree a period of no returns in advance if there is to be no activity.
Loss of CIS gross payment status can arise from late filing of any tax return or late payment of any tax.
If you are charged a CIS penalty for a return up to 5th October 2011
You can agree a reduction to the new system which is applicable to all CIS300 monthly returns due on or after 5th November 2011:
Late: £100.
Two months late: a further £200.
Six months late: a further £300 or 5% of the tax due if higher.
Twelve months late: additional enquiry-style penalties apply:
Deliberate and concealed: the greater of 100% of deductions or £3,000.
Deliberate but not concealed: the greater of 70% of deductions or £1,500. Otherwise: a further £300 or 5% of the tax due if higher.
If they are your first returns the maximum is £3,000, including for late CIS registration, except for tax geared penalties.
There is no annual return for CIS but a PAYE scheme may exist under the same scheme reference. If so, a P35 needs to be completed by 19th May; nil returns must be filed to avoid or cancel the P35 penalty.