With less than two months until the Construction Industry Scheme (CIS) penalties come into force on 19 October, Access Accounting is warning contractors filing paper-based returns to ensure their manual systems are adequate or face fines from HM Revenue & Customs of up to £3000.

Kevin Misselbrook, customer services director at Access Accounting, stated: "Contractors employing manual processes have to contend with a number of problems including incorrect information being entered onto the form, such as adding sub-contractors details on nil returns or entering information in the wrong format.

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"There have also been instances where the wrong forms have been used so one month's return is on another month's pre-printed form, the subcontractors and payments listed have not being included, or returns have been received without signatures. These could lead to penalties once the honeymoon period comes to a close. What's more, from this date, any outstanding returns from the last six months will also incur fines."

Mr Misselbrook concluded: "Contractors will need to check their submissions carefully which could be very time consuming, depending on the number of subcontractors they employ. Whilst we're not implying that implementing a software system is the best route for every contractor, for many companies it will certainly guard against unnecessary mistakes and incurring the associated penalties."

(CL/SP)