CISR85120 | CIS fraud measures: S72A Penalties: Overview

FA04/S72A provides for a penalty where a business makes a payment for construction operations or treats a sum as deducted under the CIS in a return (‘a CIS credit’), and the business knew or should have known that there had or would be a deliberate failure to comply with CIS or PAYE obligations.

The penalty applies to payments made or credits claimed after 6 April 2026.

In some circumstances, a penalty charged on a company may be attributed to the responsible company officers, who become jointly liable, with the company, to pay it.