Changes to CIS scheme: consultation
The Construction Industry Scheme (CIS) sets out special rules for tax and national insurance (NI) for those working in the construction industry. Businesses/contractors affected may be companies, partnerships or self employed individuals. Contractors have to make an online monthly return to HMRC: confirming that the employment status of subcontractors has been considered confirming that the verification process has been correctly dealt with detailing payments made to all subcontractors and detailing any deductions of tax made from those payments. Contractors can be penalised if they miss a return that they should have submitted. The government is now consulting on a number of changes to this system.
To feed in to this, please email Catherine Oxley, Policy Officer with answers to any of the following questions:
Do you believe incorporating VAT in the Gross Payment Status (GPS) compliance test will have any negative effects on your business?
Do you believe incorporating VAT in the Gross Payment Status (GPS) compliance test will have any negative effects on businesses in your supply chain?
Do you believe it is reasonable for HMRC to expect all businesses applying for Gross Payment Status to be expected to do this online (including removing the option to do this on the phone or in writing)?
Do you believe that your business is affected by the excessive volume of returns that you are submitting to HMRC?
You may also submit general comments on your experience with CIS and how you think it should be improved.
The full consultation is available here.