Penalties for late CIS contractor monthly returns will change from 6 October 2011. In many cases, businesses will benefit from the new rules especially new contractors where an upper limit for penalties will apply. The changes include:
- £100 fixed penalty for a late monthly return;
- £200 fixed penalty if return is two months late;
- Tax geared penalties if return are not filed within six months (greater of 5% of any deductions or £300) plus further tax geared penalties if the return remains outstanding after 12 months of up to 100% of any deductions where withholding information was deliberate.
If you need any further advice on CIS including the new penalty regime contact Martin Mann on 0207 182 4745 or via email on email@example.com