Schedule 55 Finance Act 2009
Schedule 55 CIS penalties. A new CIS penalty regime was introduced in October 2011. The new regime is Schedule 55 Finance Act 2009 which will replace the current Section 98A CIS monthly and final penalties for returns due to be filed on or after 5 November 2011.
Is CIS tax deductible?
When you pay a subcontractor, you usually make some deductions from their payments. HM Revenue and Customs ( HMRC ) will tell you how much to deduct from a subcontractor’s payments when you verify them. The Construction Industry Scheme ( CIS ) deduction rates are: 20% for registered subcontractors.
How do I appeal a late filing penalty for CIS?
You can appeal within 30 days of the date on the penalty notice:
- through HMRC ‘s online service.
- by writing to HMRC – quote your Unique Taxpayer Reference ( UTR ) and the payment reference shown on the notice.
When should I submit my CIS return?
Send your monthly returns to HMRC by the 19th of every month following the last tax month. Example If you’re making a return for the tax month of 6 May to 5 June, it must reach HMRC by 19 June.
What is the penalty for late filing CIS?
For returns later than this, you may be given an additional penalty of up to £3,000 or 100% of the CIS deductions on the return, whichever is higher. Pay your late filing penalty.
How can I deduct CIS from my tax return?
Only deduct materials the subcontractor has paid for directly. Ask the subcontractor for evidence that they paid for the materials if you’re unsure. Finally, deduct the CIS percentage rate (as given to you by HMRC) from the amount left.
What happens if you miss the CIS deadline?
You’ll get a penalty if you miss the deadline for filing returns. The penalty will be cancelled if you let HMRC know that you did not pay any subcontractors that month. For returns later than this, you may be given an additional penalty of up to £3,000 or 100% of the CIS deductions on the return, whichever is higher. Pay your late filing penalty.
What to do if you file late with HMRC CIS?
Pay your late filing penalty. You can appeal within 30 days of the date on the penalty notice: Use the HMRC CIS online service to change or correct something on your return. Call the CIS helpline if you need any help with this.
