This is a very important change for those of you who are involved in the new Construction Industry Scheme (CIS). Under the new CIS you are required to make monthly returns by the 19th of every month. As from 19th October 2007 HM Revenue & Customs will charge you an automatic penalty of £100 for every monthly return not received by that date - including 'nil' returns and returns due for earlier months since the start of the new scheme in April. This penalty applies for every 50 subcontractors that you have, so if you have 50 or less it is £100 per month for 51 to 100 it is £200 per month and so on. HM Revenue & Customs have also announced, that where the contractor is also a subcontractor holding a gross payment status then thier status will be reviewed every 12 months. If they have during the period failed to file all the necessary returns on time then they will lose thier gross payment status. Appeals against the fixed penalty fines will be allowed but it would seem likely that to be successful the circumstances causing the failure will need to be fairly extreme.
Date:1 October 2007
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