Consultation outcome

Tackling Construction Industry Scheme abuse

• From: HM Revenue & Customs
• Published: 19 March 2020
• Last updated: 12 November 2020 — See all updates

This consultation has concluded

Read the full outcome

Tackling Construction Industry Scheme abuse: summary of responses

PDF, 246 KB, 21 pages

Detail of outcome

This response document confirms that the government will legislate to provide for:

• a power to enable HMRC to amend the effect of certain Construction Industry Scheme (CIS) deduction claims on employer returns
• changes to the current rules on the cost of materials and deemed contractors
• expansion of the scope of the Construction Industry Scheme false registration penalty

The government will continue to consider the shape of any future supply chain measures in light of the information received from this consultation, as well as other changes to the Construction Industry Scheme to protect against fraud and abuse.

You can read the draft legislation, an explanatory note and a tax information and impact note (TIIN).

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Original consultation

Summary

We welcome views on changes to the rules to prevent tax loss from the operation of the Construction Industry Scheme.

This consultation ran from
8am on 19 March 2020 to 11:45pm on 28 August 2020

Consultation description

This consultation was published on 19 March and was due to close on 28 May. We are grateful for the responses we have already received. The government recognises that many sectors with an interest in this policy are affected by COVID-19. We want to give all stakeholders time to submit their views, so we have extended the consultation. The closing date is now 28 August 2020 (11.45pm). However, we encourage early responses from stakeholders, where possible, to support our ongoing consideration of this policy.

This consultation:

• explains a new power to allow HMRC to correct the Construction Industry Scheme (CIS) deduction amounts claimed by sub-contractors on employer returns
• sets out changes to some of the CIS rules to clarify their meaning or expand their scope
• discusses some early ideas around construction supply chains and asks whether they would help prevent tax loss

Documents

Tackling Construction Industry Scheme abuse - consultation document

PDF, 336 KB, 27 pages

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Published 19 March 2020
Last updated 12 November 2020 + show all updates

1. 12 November 2020

   Published the summary of responses and the outcome summary, which includes a link to draft legislation, an explanatory note and a tax information and impact note (TIIN).

2. 28 April 2020

   The closing date for responses to the consultation has been extended until 28 August 2020 (11.45pm).

3. 19 March 2020

   First published.