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From October 2007 HMRC will be introducing penalties for late filing of monthly returns, and will also be commencing rolling automatic compliance checks for contractors paid gross.
According to the Chartered Institute of Taxation (CIOT), HMRC are issuing a further reminder to contractors about the introduction from October 2007 of penalties and the new rolling automatic compliance checks, together with information about arrangements for making appeals. In addition, HMRC are sending a corresponding mailing to agents. HMRC are typically only receiving around 60% of the monthly returns they expect by the due date, with a further 20-30% coming in over the following couple of months. Returns not received by HMRC by 19 October 2007 will be liable for a penalty. Therefore, contractors should be reminded that they need to submit to HMRC all outstanding returns for all months back to the start of the scheme in April, or “nil” returns where appropriate for those months, by 19 October 2007 if the penalties are to be avoided. "Nil” returns may be filed by simply ringing the CIS Helpline on 0845 366 7899. If payments to subcontractors have not been made for a while, contractors can ask HMRC to record them as “inactive”. Finally, HMRC are having to send back a significant number of returns which are otherwise complete because the signature has been omitted. Contractors should therefore be reminded to sign the return before sending it in. Link Chartered Institute of Taxation
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About The Author  Sarah Laing Sarah is a Chartered Tax Adviser. She has been writing professionally since joining CCH Editions in 1998 as a Senior Technical Editor, contributing to a range of highly regarded publications including the British Tax Reporter, Taxes - The Weekly Tax News, the Red & Green legislation volumes, Hardman's, International Tax Agreements and many others. She became Publishing Manager for the tax and accounting portfolio in 2001 and later went on to help run CCH Seminars (including ABG Courses and Conferences). Sarah originally worked for the Inland Revenue in Newbury and Swindon Tax Offices, before moving out into practice in 1991. She has worked for both small and Big 5 firms. She now works as a freelance author providing technical writing services for the tax and accountancy profession. |
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Article Added Thursday, 27 September 2007 | 645 Hits |
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