Penalties for late Construction Industry Scheme (CIS) contractor monthly returns are due to change from October 2011 onwards.
The new penalty regime could produce lower penalties than those under the current rules. A key change will be for new CIS contractors who will now have an upper limit to some of the penalties that are charged.
The upper limit will apply when new contractors first send a monthly return, where that return and any other late monthly returns that are submitted at the same time.
The new penalties do not start until October 2011, however, any contractor who is liable to penalties for filing a late monthly return prior to October 2011 is entitled to request that HMRC calculate the level of penalties under the new rules. If this is less than the amount already charged, HMRC should agree to reduce the penalties to the lesser amount.
Eaves and Co Specialist Tax Advisors in Leeds are experienced in the construction industry scheme penalties and enquiries can assist in corresponding with HMRC to ensure the best position for our clients.