ECH21225 - CIS from 06-04-07 - Failure to Provide a Subcontractor with a Written Statement of Payments and Deductions Made
Regulation 4(8) Income Tax (Construction Industry Scheme)
Regulations 2005 requires a contractor to provide a written
statement of payments to each subcontractor no later than 14 days
after the end of each tax month. This statement is often called a
payment statement. The statement must include the information
detailed at
ECH14620.
A contractor who fails to provide written statements in
accordance with Regulation 4(8) may be liable to a penalty under
S98(1)(b) TMA 1970.
This penalty consists of an initial penalty not exceeding
£300 followed by daily penalties not exceeding £60 per
day until the failure is remedied.
The initial penalty is determined by the Commissioners and
can be sought even after the failure is rectified. Daily penalties
can be authorised by a Grade 6 officer but only as long as the
failure continues.
CIOs must
- consider these penalties where a contractor has failed to provide written statements to subcontractors (This text has been withheld because of exemptions in the Freedom of Information Act 2000)
- (This text has been withheld because of exemptions in the Freedom of Information Act 2000)
-
(This text has been withheld because of exemptions in the
Freedom of Information Act 2000)
-
(This text has been withheld because of exemptions in the
Freedom of Information Act 2000)
Where a contractor is also a subcontractor and is registered for Gross Payment CIOs must consider whether any failure to comply with CIS is sufficient to warrant a change in tax treatment. Further guidance is at
- ECH14650 Cancellation of Gross Payment Registration
In cases of doubt or difficulty advice can be sought from TAA (Newcastle)
