Construction Industry Scheme - New Penalties

Changes to late filing penalties are being made to all returns with effect from that for the month ending 5 November 2011.

The following penalties will apply to that return and all subsequent returns for as long as the return is outstanding:

• Immediately the return is late -  a fixed penalty of £100.
• Two months after the filing date -  a second fixed penalty of £200.
• Six months after the filing date - a tax geared penalty which is the greater of £300 or 5% of the amount of deductions shown on the return.
• Twelve months after the filing date - a tax geared penalty which is the greater of £300 or 5% of the amount of deductions shown on the return.

Interest will be levied on nay penalty paid late.

If you need help in completing these forms, or advice generally concerning the scheme, please contact MIchael Fagelman on 01329 821900.