New penalties for the late submission of CIS Returns are now in force. Returns should be submitted by the 19th of each calendar month, however, if HMRC does not receive the Return on time, including Nil Returns, the following penalties will be applied automatically:

Length of Delay Penalty to pay

1 day late A fixed penalty of £100

2 months late A fixed penalty of £200

6 months late £300 or 5% of the CIS deductions shown on the return, whichever is higher. This is as well as the penalties above.

12 months late £300 or 5% of the CIS deductions shown on the return, whichever is higher.

In serious cases you may be asked to pay up to £3,000 or 100% of the CIS deductions shown on the return, whichever is higher.

These are as well as the penalties above.