Changes to the penalties for late construction industry scheme (CIS) returns came into effect on the 6th October 2011. These include:-

A £ 100 fixed penalty if the return misses its due date, ie 19th of each month.

A second £ 200 fixed penalty if a return is two months late.

A tax geared penalty if the return in not filed six months after its due date, ie the greater of 5% of any deductions shown on the return or £ 300.

A second tax geared penalty if the return is still outstanding after 12 months. This will be the greater of 100% of any deductions or £ 3,000 if withholding of information was deliberate and concealed.

Or the greater of 70% or £1,500 if it was deliberate but not concealed, or the greater of 5% or £ 300 for cases where information was not withheld.

An upper limit on the amount of fixed penalties charged to new contractors that have not filed their first returns on time and interest on any penalty paid late.

The first return affected will be for payments made to subcontractors in the month ending 5th November 2011.