CIS penalties: A nice little earner! | AccountingWEB

CIS penalties: A nice little earner!

Figures revealed in Hansard indicate that CIS penalties are turning into a nice little earner for the Treasury, reports Tax Lecturer of the year, Rebecca Benneyworth.

The number of penalty notices issued for late CIS monthly returns are shown as:

  • October 2007 35,919
  • November 2007 44,921
  • December 2007 37,618

She adds, "So a total of 118,458 notices were issued in a three month period, bringing in fines of at least £11.8 million (as the minimum penalty is £100).


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CIS penalties

pjb488 | | Permalink

I have a client where HMRC have accepted - and acknowleged this in writing - that the return to 5 June was correctly submitted but their "system" insists on sending out a penalty notice of £100 each month for the period where they accept they were/are in error. I suspect that the actual problem is that the return was submitted in June rather than October. Apparently the only solution is to keep appealing!! Probably time to raise them a bill?

Iniquitous penalties

AnonymousUser | | Permalink

The whole system of tax penalties is unfair,excessive and occasionally dishonest. Last year we had the position of HMRC waiting until about November and then "pouncing" on contractors for late 2006/07 CIS Returns and levying penalties of £400 or more ; this had no regard of whether any tax was owing, it was simply an excessive fine for a bit of forgetfulness. In the same way, Self Assessment Surcharges at 5% for being just over the 28-day limit can give rise to effective interest rates that in our hands would give rise to a charge of usury. It is the job of HMRC to collect tax and charge interest when it is overdue to compensate HM Treasury.; it should not be fining the people who are least able to cope with the system, i.e. small busisnessmen who do not have the resources of Bovis etc to cope with it.

RebeccaBenneyworth's picture


RebeccaBenneyworth | | Permalink

I did suspect as much Rob. I wonder how many will be "real".

Issued, but not necessarily valid...

Anonymous | | Permalink

Whilst 118,458 penalty notices were issued, how many were valid (and for which the penalty therefore applies) as opposed to issued in error? I have appealled against 12 penalty notices for the periods mentioned, of which seven have been discharged and I expect the balance to be as well.