HMRC has published for external comment an order that will bring the new late filing penalty regime into effect for CIS returns.

Under the CIS, a contractor making contract payments must make a monthly return to HMRC not later than the 19th day of each month.

Two changes to the scheme are set out in the Order http://www.hmrc.gov.uk/drafts/draft-cis-penalties.pdf which will come into effect from 6 October:

• penalties for failure to comply
• late payment of that penalty (or late repayment by HMRC) carries interest

A full Impact Assessment of the effect that this instrument will have on the costs of business and the voluntary sector is available from the HMRC website at http://www.hmrc.gov.uk/