Theres a tax case report in one of our professional journals this week, Lewis v CRC.
Its a simple case – a contractor took on a subcontractor, and initally ignored the CIS rules regarding monthly returns.
The contract with the subcontractor run from May 2007 to March 2008, and the monthly returns were all filed in May 2009.
Alas this triggered 133 seperate monthly penalties as each missed return carries a penalty each month, a total of £13,300.
In fact the original oenalty assessment was £38,400 but it was reduced on appeal to £13,300 – either way expensive!
A lesson to all – make sure HMRC monthly CIS returns go in on time.