CH153450 - Penalties for Failure to Pay on Time: Rules for specific taxes: Construction Industry Scheme (CIS): Penalties: Amounts payable under a determination or as a result of the amendment or correction of a Return
We may make a determination under Regulation 13 IT (Construction Industry Scheme) Regulations 2005 where
- there is a dispute between a contractor and sub-contractor as to
- whether a deduction on account of tax should be made, or
- the amount of the deduction on account of tax, or
- we have reason to believe that there may be an amount payable for a tax year which has not been paid.
A contractor may amend or correct their return if it comes to their notice that it contains an inaccuracy.
A penalty is payable where an amount due under such a determination, amendment or correction is paid late.
»Ê¹ÚÌåÓýapp penalty date is 31 days after the date on which the determination, amendment or correction is made. This means that the contractor is liable to an initial penalty of 5% of the amount unpaid at the penalty date.
»Ê¹ÚÌåÓýapp employer may also be liable to further penalties based on 5% of any amount unpaid 5 months or 11 months after the penalty date.
Note that if an amendment or correction is made to a return this may indicate that the original return was incorrect and that an inaccuracy penalty may be chargeable under Schedule 24 FA07.