CH62320 - Penalties for Failure to File on Time: Types of penalties for failure to file on time: CIS returns: Overview
This page only applies to the Construction Industry Scheme (CIS).
A person is liable to a penalty when they fail to file their CIS return (CIS300) by the filing date. The penalty date is the day after the filing date. They will be liable to further penalties where their return remains outstanding for 2, 6 and 12 months from the penalty date. After 12 months from the penalty date, the amount of penalty also varies depending on the reason for the failure, and whether the information withheld would enable or assist HMRC assessing the person’s correct liability of CIS deductions.
The penalties are summarised in the table.
|
When liable to penalty |
Type of penalty |
Amount of penalty |
Guidance |
|
On the penalty date |
Initial fixed penalty |
Fixed £100 | |
|
2 months after the penalty date |
Second fixed penalty |
Fixed £200 | |
|
6 months after the penalty date |
6 months further penalty |
Greater of 5% of the liability that would have been shown in the return, and £300 | |
|
12 months after the penalty date |
12 month further penalty |
If deliberate and concealed, greater of 100% of the liability that would have been shown in the return, and £3,000 | |
|
If deliberate but not concealed, greater of 70% of the liability that would have been shown in the return, and £1,500 |
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|
If not deliberate, greater of 5% of the liability that would have been shown in the return, and £300 |
See the diagram(word 29KB) of the penalties for CIS returns.
Note that after a return or other document is outstanding for 12 months, a person can demonstrate more than one behaviour regarding information in that return. The penalty is calculated using the highest penalty percentage that is applicable, see CH62440.
The person can receive a reduction to the 12 month 100% or 70% penalty if they make a disclosure, see CH63100+. But, we cannot reduce the 12 month 5% penalty for a disclosure.
There are special provisions covering people who are registered for ‘gross payment’ only, see CH62500.
Where a person files their first CIS return and we identify that they should have filed earlier returns, there are adjustments to the late filing penalties that apply, see CH62520+.
