Here we have the information about the penalties that will be imposed to get registered for payment under deduction or for gross payment status within the Construction Industry Scheme (CIS) if either of the following is done:

  • supplied false information
  • provided false documents

Registration conditions

Business and Identity details must be provided by the subcontractors if they’re registering with CIS for:

  • payment under deduction
  • gross payment status

They must also confirm their turnover from work involving construction operations in the preceding  12 months. Turnover means income however does not include the direct costs incurred for the materials provided.

HMRC may request proof to validate the information provided during registration and may cancel your registration if you’ve done or influenced another person to have done any of the following:

  • supplied information knowing it to be false
  • supplied any document which is false
  • do not respond to requests for documentary evidence to support your application

This cancellation will take effect immediately with a penalty for false registration

Penalties for false registration

£3,000 information submitted with reference to the identity, business or turnover about the business is submitted

  1. recklessly
  2. while knowing it to be false, and still doing either of the following:

– give us further false information or documents

– do not respond at all to our requests or supply the additional information we request

£2,000 if either of the following applies:

  1. you are unable to provide satisfactory documents
  2. you confirm that your original registration provided false information or documents about either of the following

– your identity and business

– your business and turnover

£1,000 if the false information or documents are about any of the following:

  1. your or another person’s identity
  2. the business
  3. the turnover

For more information, click here.