New CIS Penalties 2011

HMRC have announced changes to late payment penalties for late or none filing of Contractor Monthly Returns (CIS300).

The first return affected by these changes is for the month to 5 November 2011 which must be filed by 19 November 2011 to ensure penalties are avoided.

The new penalties are as follows:

• A £100 fixed penalty as soon as the return is overdue.
• A second £200 fixed penalty if the return is two months late.
• A tax-geared of which is the great of £300 or 5% of the amount of deductions shown on the return if the return is not filed after six months.
• A second tax-geared penalty which is the greater of £300 or 5% of the amount of deductions shown on the return if the return is not filed after twelve months

HMRC will also charge interest on any penalty paid late.

Further details can be found www.hmrc.gov.uk/CIS/penalties-late-returns.htm

If we can be of any assistance to you please contact our payroll bureau on 01332 680540.