CIPP Survey - Improving the operation of the Construction Industry Scheme (CIS)

28 July 2014

The CIPP Policy team have produced a survey to gather the views, opinions and experiences from members to feed into the CIPP response to the HMRC consultation document Improving the operation the Construction Industry Scheme (CIS). The survey will close on 8th September.

CIS is a specialist tax deduction scheme designed specifically for the construction industry and was introduced in 1972. Since that time change has been introduced to the CIS scheme: however it is still viewed as burdensome to the construction industry and HMRC alike and this paper is looking at options to improve the operation of the scheme for smaller business and to introduce mandatory online CIS filing for contractors. Additionally the paper includes proposals that will impact upon:

  • Gross payment status: Proposals look to simplify and improve the compliance and turnover tests which will enable a greater number of sub-contractors to access gross payment status.
  • Improving the digital offering for subcontractors which looks to give instant visibility of payments.

· The CIS online system such as:

o An upgrade to CIS online processes

o Mandate online monthly filing of CIS returns

o Introduce an online appeals process for CIS penalties

o Introduce an online digital account for all subcontractors.

o Improvements to the verification process

o Design a verification app for site based contractors.

The consultation paper is available to download at GOV.UK and would be a useful accompaniment to aid and inform you as you complete the survey.

Thank you in advance for your assistance and commitment in completing this survey to help in developing improvements to the Construction Industry Scheme.