Construction Industry fines bite!

The new Construction Industry Tax scheme started in April 2007, but fines for late returns were deferred for a period of six months to give businesses time to adjust to the new scheme. Now that the period of grace is over, HMRC has published statistics to show that many businesses have been late with their returns over the summer, and if the data is to be believed, around 20,000 construction businesses have filed no returns at all, and are now facing fines of £600 per month, increasing by £100 each month until they get up to date.

Every construction business which receives a return must file it with HMRC by 14 days after the end of each tax month. If the business has made no payments under the scheme, then nil returns must be made by the due date, otherwise a penalty of £100 will be due. The clear message is - to avoid heavy penalties, get up to date now!