PART 1: DATES, DEFINITIONS AND OBLIGATIONS
CIS Penalties until 30th September 2011
Offence
Penalty
Knowingly or recklessly making a false statement or providing a false document when applying for a certificate Unlawful disposal or possession of CIS documents COPYRIGHT © 2021 THE CHARTERED INSTITUTE OF PAYROLL PROFESSIONALS Not exceeding £3,000 reduced to £2,000 on admission and cooperation and reduced further to £1,000 if the offence is about identity or turnover only. Failure to inspect a Registration Card Failure to notify a change in control in the company Initial penalty not exceeding £300 Failure to produce records Daily penalties not exceeding £60 per day Submission of a false declaration or documentation May incur a fine up to £3,000 Failure to submit the monthly return on time Automatic penalty of £100 for a return of up to 50 subcontractors, and an additional £100 for each additional 50 subcontractors that should be included CIS Penalties for late returns from 1st October 2011 Offence Penalty
Failure to submit the monthly return on time Return still outstanding two months after due date Return still outstanding six months after due date
£100
£200
the greater of 5% of any deductions shown on the outstanding return or £300 • due to ‘deliberate and concealed’ actions: 100% of any deductions shown on the return or £3,000. • deliberate but not concealed: the greater of 70% of any deductions shown on the return or £1,500. • in all other cases 5% of any deductions shown on the return or £300 Proposed changes A further review of CIS in 2017 started the process of migrating CIS to a new platform. Other than this HMRC have updated their list of known CIS software providers. At the time of writing CIS continues to be outside of the HMRC making tax digital project. No printing, copying or reproduction permitted. Return still outstanding twelve months after due date
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