1 January 2015

Changes to CIS Confirmed

Following consultation with the industry, Her Majesty’s Revenue & Customs (HMRC) has confirmed the changes that will be made to the Construction Industry Scheme (CIS), the majority of which will come into effect from April 2016.

The consultation had identified the objective of making CIS quicker, simpler and easier for businesses by reducing the administrative burden, lowering the threshold to obtain gross payment status, and upgrading the CIS online processes.

An online appeals service will be introduced in 2015 with an alternative paper appeals service being retained for those who are not able to file online and the other main changes to CIS from April 2016 will be:

• Reducing the upper limit of the turnover test from £200,000 to £100,000
• Simplifying the annual compliance tests by requiring less information to be submitted
• Mandatory online filing of CIS forms with an alternative filing method available for those who are unable to file online
• Online verification of sub-contractors with the main telephone verification service to be withdrawn in 2017. A reduced telephone verification service will be retained after 2017 for those who are not able to verify sub-contractors online

The outcome of the consultation can be read in full on the HMRC website.

Members can receive free advice on CIS via the Tax and Business Helpline provided by Baker Tilly on 0844 249 9875.