Amount of penalty: CIS returns
16.Paragraph 7 states that the following paragraphs, which provide for a penalty, apply only for CIS returns.
17.Paragraph 8 provides for a penalty of £100 if the taxpayer fails to submit a return by the due date.
18.Paragraph 9 provides for a penalty of £200 if the failure continues after the end of a period of two months beginning with the penalty date.
19.Paragraph 10 provides for a penalty of the greater of £300 or 5 per cent of the liability to make payments which would have been shown on the return if the failure continues after the end of the period of six months beginning with the penalty date and there would have been a liability to make payments to HMRC shown in the return in question.
20.Paragraph 11 provides for an additional penalty if the failure continues after the end of the period of 12 months beginning with the penalty date and there would have been a liability to make payments to HMRC shown in the return in question.
21.Paragraph 11(2) provides for higher penalties where by failing to make the return, the taxpayer withholds information, which would enable or assist HMRC to assess the amount of CIS deductions that the taxpayer is liable to pay.
22.Paragraph 11(5) states that in any other case, the penalty, if the failure continues after the end of the period of 12 months beginning with the penalty date, is the greater of £300 or 5 per cent of the liability to make payments which would have been shown on the return in question.
23.Paragraph 13 provides for fixed-sum penalties arising from late filing a CIS return to be capped to £3,000 where the person has failed to make a first CIS return by the due date.
