Lower charges will apply from October this year

HM Revenue and Customs has cut some late payment fines for contractors filling out Construction Industry Scheme tax returns.

Among several areas where fines have been lowered, there will be a new upper limit on the amount charged as penalties that can be imposed on contractors new to the scheme.

HMRC said that lower charges could apply for a number of reasons - if firms were charged more than one penalty for a single late return, if they had been fined more than £100 for a late return, or if they were a new contractor that had been given penalties for at least one monthly late return.

However, the minimum penalty for each late monthly return will remain at £100.

The new system of charges will apply from October this year.