ECH21240 - CIS from 06-04-07 - Making an Incorrect Declaration (Form CIS300)

The CIS300 contractor monthly return includes a declaration

• that none of the contracts to which the return relates is a contract of employment,
• that each subcontractor on the return has been verified or included on previous CIS returns in the last two years and
• that the return is correct and complete.

Regulations 4(5)(a) – 4(5)(c) Income Tax (Construction Industry Scheme) Regulations 2005 require a contractor to include this declaration in the return.

ECH21235 gives advice on penalties where a contractor fails to make the declaration on the CIS300 contractor monthly return.

A contractor who fraudulently or negligently makes an incorrect declaration can be liable to penalty not exceeding £3000 under the provisions of S98(2) TMA 1970.

Wherever a contractor has made an incorrect declaration on the return CIOs must

• establish the reasons why an incorrect declaration was made ( ECH8045) and
• contact TAA (Newcastle) (This text has been withheld because of exemptions in the Freedom of Information Act 2000)for advice before seeking a penalty under S98(2) TMA 1970.

• (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)