On the 27 April 2023 HMRC published details of a consultation 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
