CH153300 - Penalties for Failure to Pay on Time: Rules for specific taxes: Construction Industry Scheme (CIS): Penalties: Failure to pay all or part of amounts due - further penalties

»Ê¹ÚÌåÓýapp second part of the penalty charge for the tax year consists of two 5% penalties:

  • 5% of the deductions on account of tax remaining unpaid 6 months after the penalty date, and
  • 5% of the deductions on account of tax remaining unpaid 12 months after the penalty date.

»Ê¹ÚÌåÓýapp penalty date is the day after the due date.

Unlike the default penalty, the further penalties do apply to the first failure in a tax year.

Note that you have a further penalty even if there is no default penalty. This would occur where the first failure remains unpaid for 6 months.

See the example at CH153400.

FA09/SCH56/PARA7

FA09/SCH56/PARA8