Improving the operation of the Construction Industry Scheme
10 December 2014
HMRC have published details of the changes to the Construction Industry Scheme (CIS) which were announced in the Autumn Statement.
The Government has today published a summary of responses to the consultation at this link anddraft secondary legislation for a short technical consultation. The aim of the next stage of the consultation process is to ensure the legislation works as intended.
The HMRC notes say that the overall effect of the changes is intended to improve the operation of the Construction Industry Scheme (CIS) making it easier for businesses to access gross payment status, reduce administration burdens and move more transactions online.
The specific changes include the following:
· the threshold for the turnover test will be reduced to £100,000 in multiple directorships;
· the initial and annual compliance tests will focus on fewer obligations;
· the nil return obligation will be amended;
· joint ventures where there is already one member with gross status will be allowed easier access to gross payment status;
· allow an earlier repayment to liquidators in insolvency proceedings; and
· mandation of filing of CIS returns and online verification.