Construction Industry Penalties – F9 Consulting

CIS Construction Industry

CIS Construction Industry

If you operate in the construction industry you should be acutely aware of your filing obligations. Penalties are severe for non compliance with CIS and could ultimately impact your gross status.

If any of your CIS returns are just one day late, HMRC will charge an initial fixed penalty of £100.

If they still haven’t received that return:

  • 2 months after the date it was due, a second fixed penalty charge of £200 will apply.
  • 6 months after the date it was due,  a further penalty of £300 or 5% of any liability
  • 12 months after the date it was due a further penalty – the amount of this penalty will depend on why your return was late

The amount they will charge will be either £300 or 5% of any liability to make payments, or a ‘higher’ penalty of:

  • up to 100% of any liability to make payments
  • a minimum penalty of £1,500 or £3,000

A ‘higher’ penalty will be charged if HMRC find out that you deliberately withheld information.

When a contractor first files a CIS return, if earlier CIS returns are also late, HMRC may ‘cap’ the total amount of the £100 and £200 fixed penalties at a maximum of £3,000 for some returns.

Where a CIS return only relates to subcontractors registered for gross payments, there’s no liability to make payments but penalties still apply. A penalty of £300 applies when the return is 6 months late, and when the return is 12 months late HMRC charge £300 or £1,500 or £3,000 depending on why your return was late.

We are able to assist with all construction related issues, including CIS rebates for Limited companies and Sole Traders.

Contact us today, call 01277 223 278.

Request a call-back

We love to hear from new clients, if you would like us to call you back, pop in your details, one of our qualified professionals will be in touch.

    Have your say, leave a comment…

    Your email address will not be published. Required fields are marked *

    City of London

    Second Floor,
    10 Trinity Square,
    London EC3N 4AJ
    Phone: 0207 100 1080

    Canary Wharf

    29th & 37th Floors
    One Canada Square,
    Canary Wharf, London E14 5AA
    Phone: 0207 099 1080


    First Floor
    81-85 High Street,
    Brentwood, Essex CM14 4RR
    Phone: 01277 223 278


    Chancery Place
    50 Brown St
    Manchester M2 2JT
    Phone: 0161 820 1080

    Opening Times

    Monday – Saturday
    8:00 AM – 6:00 PM