Tax experts: CIS fines 'excessive'

Tax experts are calling on the Revenue to stop blitzing contractors with CIS fines.

Lobbyists want HMRC to stop hitting firms with £100 penalties every time their submissions are late.

Howard Royse, the construction industry head for the Chartered Institute of Accountants said: "The current system is out of control and punishing contractors excessively.

"A one-off fine is enough. There's no need to hit people every month when they are struggling with the system and all the other economic problems at the moment."

The industry has already been hit with more than £70m in fines since the introduction of CIS. Royse said: "HMRC needs to take a more flexible approach if it doesn't want to alienate the construction industry."

An HMRC spokesman said: "Without the continuing penalties for non-compliance there would be little incentive to submit outstanding returns once the initial penalty was incurred."