30,000 contractors hit with 800,000 tax fines

Around 30,000 building contractors have been hit with more than 800,000 fines since November for not filing tax returns on time.

The fines are being triggered each month a contractor fails to send in details about which sub-contractors it has used and how much they were paid.

Howard Royse, construction boss of the Institute of Chartered Accountants in England and Wales said the number of fines – which start at £100 – are going up.

Monthly totals have risen from 92,000 in April to 126,000 in June and prompted criticism of the new Construction Industry Scheme, according to the Daily Telegraph.

Repeat offenders are investigated and may be outlawed from paying subcontractors gross income tax.

Around 12,000 contractors have had their gross payment status cancelled, with 4,500 out of 6,000 people who appealed the decision successful.