Deferred payment terms for CIS
New regulations come into force on 13 August 2009 to ensure that the deferred payment rules for the suspension of penalties applies to construction industry scheme (CIS) surcharges.
This brings the CIS in line with changes to PAYE and NI which allow for the suspension of certain late payment surcharges where taxpayers enter into an agreement with HMRC to defer payment of tax due.
The effect of these regulations is that HMRC will not issue CIS surcharges when a taxpayer, who is unable to make a payment by the due date, contacts HMRC (before the due date) to request time to pay and HMRC agrees to that request. Where taxpayers do not keep to the terms of the agreement, the suspension of penalties may cease and the taxpayer may become liable to the surcharge.