Many contractors are often caught unaware by the significant penalties that HMRC can charge where they consider the CIS scheme has not been operated correctly. We have set out below a detailed summary of the type and level of penalties which can be applied where HMRC consider a failure or an error has occurred.
Failure to submit (or late) monthly CIS300 return
However, the 12 months’ further penalty can be higher where the behaviour for the failure is considered to be (i) deliberately withheld but not concealed or (ii) deliberately withheld and concealed:
Incorrect CIS300 Return
Failure to make a declaration on CIS300
Making an incorrect declaration on CIS300
Failure to provide the sub-contractor with a Payment & Deduction Statement
Providing the sub-contractor with an incorrect Payment & Deduction Statement
Working with The Guild and our dedicated compliance teams reduces the risk of clients being subject to such penalties. If you have any questions regarding the CIS penalty regime or would like to discuss these issues further, please feel free to contact The Guild.
The content of this article is for guidance only and shall not constitute advice. Please seek independent advice or contact GuildHUB for information about its services.