A4.553 Late filing penalties—construction industry scheme (CIS)
Penalties under the harmonised regime for late returns under the construction industry scheme (CIS) came into force on 6 October 2011 and apply to returns whose filing date is after 19 October 20111.
From 6 April 2015 HMRC does not charge contractors a late filing penalty in respect of any months for which a return is not due for the month. However, if a contractor does not tell HMRC that a return is not due for the month, a penalty may be issued. Where this happens, the contractor should tell HMRC that they have no return to make for the month in question, and the penalty will be cancelled2.
For commentary on CIS returns, see E5.542B.
If a return is not filed by the due date, there is an initial fixed penalty of £1003.
If the default continues beyond the two months beginning with the 'penalty date' (which is the day after the due filing date4), there is a further penalty of £2005.
If the default continues beyond the six months beginning with the penalty date (in other words for a further four months after the £200 penalty became due), there is a further penalty equal to the greater of £300 and 5% of the liability that would have been shown had the return been filed6.
If the default continues beyond the 12 months beginning with