In this section:
- Monthly returns and record keeping under CIS
- Using CIS Online
- CIS Online login page
- Correcting monthly return and payment errors
- Late returns and late return penalties under CIS
Late returns and late return penalties under CIS
If you're a contractor under the Construction Industry Scheme (CIS) you'll need to send HM Revenue & Customs (HMRC) a return each month. Your monthly returns tell us about any payments you've made to your subcontractors during the last tax month.
We'll expect you to send your returns in to us on time every month to help us run the scheme efficiently. It's important to beat the deadline to avoid getting an automatic penalty.
This guide explains what will happen if you send a return in late.
You'll also find this information helpful if you're an agent who handles CIS returns for your clients.
On this page:
- When late returns penalties apply
- Penalties for late CIS returns
- What to do if you disagree with penalties charged under the CIS
When late returns penalties apply
We expect you to get each monthly return to us no later than 14 days after the end of the tax month it's for. A tax month runs from the sixth day of one month to the fifth day of the following month. So in practice, it means you'll need to get your returns to us by the 19th of each calendar month.
For example, if your return was for the tax month from 6 May to 5 June, you'd need to get it to us no later than 14 days after 5 June. So the deadline for that return would be 19 June.
Even if you didn't pay any subcontractors during the last tax month, you'll normally still need to make a 'nil return' to tell us. The same deadline applies to nil returns.
Read about making monthly contractor returns under the CIS
Making sure you meet the deadline
If you make your returns by post, be sure to send them in good time to allow for any postal delays. Always make sure you sign the return. If you don't, we'll send it back for you to sign. But we can't give you any extra time to return it to us.
Submitting your returns electronically can help you to beat the deadline. You can make your return 24 hours a day, seven days a week. And it should get to us almost instantly.
There are several different ways of making your monthly returns electronically, including our CIS Online service. It's free to use, but you'll need to register before you can use it.
However you make your returns, you should always get them to us on time. So even if there's something on a return that you're still discussing with us, send it in anyway.
Find out how to use our CIS Online service
Penalties for late CIS returns
If you send us a monthly return late - whatever the reason - you'll automatically get a penalty.
The basic penalty for a late return with fewer than 50 subcontractors on it is £100.
If the return has more than 50 subcontractors on it then the penalty goes up by another £100 for each additional block of up to 50 subcontractors on the return.
| Number of subcontractors on the return | Automatic penalty for a late return (including 'nil' returns) | Additional penalty for each extra month late (continues up to 12 months) | Extra final penalty where a return is over 12 months late |
|---|---|---|---|
| 0 - 50 | £100 | £100 | £3,000 |
| 51 - 100 | £200 | £200 | £3,000 |
| 101 - 150 | £300 | £300 | £3,000 |
| 151 - 200 | £400 | £400 | £3,000 |
The penalty keeps increasing with the number of subcontractors on the return. So if there were 500 subcontractors, for example, the late return penalty would be £1,000 - and so on.
Returns with no subcontractors on them - nil returns - also get a £100 penalty if they're late.
Returns that are more than a month late
We charge these penalties for each month a return's late. So if a return with 50 subcontractors on it was two months late, for example, then the total penalty would be £200. If we still hadn't received it after three months this would go up to £300 - and so on for up to 12 months.
If we still haven't had a return after 12 months we add an extra final penalty charge of an amount up to £3,000.
If you disagree with penalties charged under CIS
If we charge you a penalty we'll give you a penalty notice. You've got the right to appeal against any penalty notice.
You'll find more information about how to appeal against a late return penalty on the penalty notice we sent you.
Mistakes do happen and it may be that we agree with the reason why you're appealing. If we do, we may drop the penalty. If we can't agree, the independent Appeals Commissioners will decide on your appeal.
Amended returns and changes to penalty amounts
Sometimes we may change a penalty amount because you've amended a late return.
For example, you might have sent us a late return with 51 subcontractors on it. Because there were more than 50 subcontractors, we'd have charged you the basic £100 penalty plus an extra £100 - £200 altogether. If you later realised you'd included two subcontractors by mistake you'd need to tell us about the error so we could update your return. Because the amendment reduced the number of subcontractors below 50, you should write to us and ask us to reduce the penalty to £100.
This can work both ways. If your original late return showed 49 subcontractors but you later updated it to 52, for example, we'd have to increase your penalty.
If you've got any questions about a penalty notice, or you want advice on managing your returns, you can call our CIS Helpline on Tel 0845 366 7899 (open from 8.00 am to 8.00 pm seven days a week).
To find out more about penalties for filing form CIS300 late see our penalties FAQs page
Find out about your obligations and responsibilities as a CIS contractor
Register for the CIS Online service
Obtain CIS340 'Construction Industry Scheme - guide for contractors and subcontractors' (PDF 583K)
