Manual errors risk CIS fines
Paper-based CIS returns raise risk of £3000 fines, as new penalties come into effect on 19 October
Contractors planning to file paper-based Construction Industry Scheme returns
will have to show that their manual systems are robust or face fines of up to
£3000.
CIS penalties come into effect on 19 October, by which time businesses will
have to ensure that systems are adequate.
‘Contractors employing manual processes have to contend with a number of
problems including incorrect information being entered onto the form, such as
adding sub-contractors details on nil returns or entering information in the
wrong format,’ said Kevin Misselbrook, customer services director at Access
Accounting.
Misselbrook said these risks could be reduced by filing returns
electronically.
‘We’re not implying that implementing a software system is the best route for
every contractor, but for many companies it will certainly guard against
unnecessary mistakes and incurring the associated penalties,’ he said.
Further reading:
CIS will cost ten times more than HMRC
estimates