The information on this page was last updated on April 30th 2020.

Update: On 28 April 2020, HMRC announced that due to Covid-19, they were extending the deadline on a number of consultation deadlines to allow sufficient time for full engagement and for stakeholders to submit their views. The consultation period for Tackling Construction Industry Scheme Abuse has been extended, and will now close on 28 August 2020.

HMRC have recently issued a consultation document ‘Tackling Construction Industry Scheme Abuse’, which seeks to explore ways to prevent tax loss in the Construction Industry Scheme (CIS). Whilst this consultation was not totally unexpected, the timing of the release of the consultation document, and the proposed closing date for responses of the 28th May, seems insensitive in the current circumstances.

HMRC detail five different issues and ‘proposed’ solutions. They cover the following subjects:

  • Correcting the CIS deductions claimed on an EPS;
  • Deemed contractors;
  • Deductions for materials;
  • Expanding the scope of the false registration penalty;
  • Site Registration Scheme (A consultation on supply chain proposals).

We have attached a summary of the proposals below, and also provided a link to the consultation document, which you can access by clicking here.

If you have any questions regarding this, or any other Employment Tax issue, please get in touch with a member of Smith Cooper’s Employment Tax team.

Summary of the proposals