Improving the operation of the Construction Industry Scheme

09 May 2016

Estimated examples have been published detailing the admin burden impact of the improvements to the operation of the Construction Industry Scheme (CIS).

From 6 April 2016 legislation has been introduced to improve the administration of CIS. The changes include:

• a simpler process for sub-contractors to achieve gross payment status
• mandatory online filing of monthly returns and subsequent amendments for contractors
• an improved online verification service for contractors to verify the status of sub-contractors, but this will not be mandatory until April 2017.

The overall impact is that there will be a negligible one-off implementation cost for these measures mostly due to sub-contractors opting to apply for gross payment status. The estimated average administrative savings in the first 5 years is £400,000 per annum.

The document below contains detailed estimates of the administrative burden impact of the CIS reform.

Administrative burden impact of the Construction Industry Scheme (CIS) reform - estimates