A shake-up for the Construction Industry Scheme (CIS) is on the way, following a government consultation.
HM Revenue & Customs (HMRC) announced the results of the consultation, which took place between June and September last year, on 10 December. Changes to be introduced as a result include:
- removing the statutory obligation to report a nil return from April 2015
- reducing the upper limit in the turnover test for gross payment status in multiple partnerships or directorship businesses to £100,000 from April 2016
- simplifying the CIS compliance test. Directors’ individual income tax filing requirements will be removed from the revised version but PAYE payment obligations will remain
- making online filing of CIS returns mandatory from April 2016. HMRC said that alternative arrangements would be offered where customers could not file online because of “age, disability, remote location or religious objection”
- introducing an enhanced online verification services from April 2016 with withdrawal of telephone verification in 2017
- introducing an online CIS account where payments made and received could be viewed in real time. HMRC is currently in the early stages of this project, working with external IT partners
- an online appeals services will be introduced in 2015 and rolled out to all contractors from 2016.
Moore Thompson’s payroll team can provide expert support on the new CIS regime as the different elements are introduced. For more information on any aspect of CIS, please contact us.