Our tax preparation specialists tell you how to settle up with HMRC if you have received a late filing penalty for your CIS return

At DSR Tax Claims Ltd, we know that making sure you have paid what you owe to HMRC can sometimes be a tricky task. That’s why our experts want to help make life as easy as possible for you by sharing our specialist knowledge with you. So, whether you are wanting more information about VAT or need to know about charitable tax relief, our handy guides are here to help. All our information is based on HMRC sources, so you can rest assured that these guides are filled with helpful and accurate information.

What are CIS late filing penalties?

If you work as a contractor in the construction industry under the CIS (Construction Industry Scheme), you are expected to file a monthly CIS return to tell HMRC how much you have paid out to subcontractors.

If you file a late return, HMRC will issue you with a late filing penalty notice telling you how much you need to pay as a result of your late return. You are expected to pay this penalty within 30 days of receiving the notice, unless you appeal.

You can appeal through HMRC’s online service or by writing to HMRC, quoting your UTR and the payment reference on the penalty notice.

There are a number of ways you can pay your late CIS filing penalty but you are no longer able to make any payments to HMRC at the post office.

How long it takes your payment to reach HMRC depends on the payment method you use because some take longer than others.

  • Same day/ next day: online or telephone banking (using Faster Payments); online using a debit or corporate credit card; CHAPS or at your bank or building society.
  • Three working days: Bacs; by cheque or by Direct Debit (if you have already set one up for use with HMRC before and you only want to make a single payment).
  • Five working days: by Direct Debit, if you are making a single payment but you haven’t used this payment method with HMRC before.

How can you check your late CIS filing penalty payment has been received?

If you want to check you have made your penalty payment, HMRC recommends that you check your bank or building society statements to see if the payment has left your account.

You can request a receipt from HMRC if you are paying by cheque through the post.

At present there is no facility for you to check online that your payment has been received by HMRC.

How can DSR Tax Claims Ltd help?

We know that setting up a business can be hard work – there’s so much to think about and that’s before you start dealing with HMRC penalties and CIS returns. Our friendly team of tax specialists at DSR Tax Claims Ltd are on hand to help make life easier for you. We’re the experts at identifying your maximum allowable expenses so call us on 0330 122 9972 – we’re the tax experts you can trust.