Consultation: Construction Industry Scheme reform
27 April 2023
HMRC has published a consultation today (27 April 2023) on a reform of the Construction Industry Scheme (CIS).
Proposals include;
- Amending the Compliance Test to include VAT compliance – this includes the initial test to gain Gross Payment Status (GPS) as well as the annual compliance check. Currently all CIS direct tax affairs must be up to date with all returns and payments correct and submitted by the statutory deadlines but indirect taxes are not considered
- Bringing forward the first annual review of compliance history to 6 months (instead of 12 months) and then annually thereafter
- Introducing a power to enable HMRC to mandate the channel of application for GPS to be exclusively digitally
- Administrative Easements
- Simplifying the treatment of payments made by landlords to tenants
- Reducing the administrative impact of operating the CIS for certain groups
The consultation closes on 20th July 2023.