CIS changes

HMRC announced they were making some minor changes to the CIS scheme from 6 April 2024, in that VAT failures are now counted when looking at whether a firm qualifies for gross payment status.

In line with other taxes, minor failures will not count towards gross payment disqualification. “Minor failures” are:

  • 3 late submissions of up to 28 days for VAT returns
  • a late payment of less than £100 in VAT
  • 3 late payments of up to 14 days of VAT liability (of £100 or more)

The same appeal rights and reasonable excuse provisions apply to VAT failures as to other taxes.

Other changes that were introduced at the same time:

  • HMRC is bringing forward the first review of compliance from 12 months after application to 6 months.
  • Gross payment status can be immediately removed in cases of fraud.
  • Most landlord/tenant construction payments are now outside of CIS.
  • Subcontractor registration will eventually be moved wholly online, except for the digitally excluded.

Finally, HMRC announced a significant change with regards to limited company contractors obtaining a CIS refund, and it is now no longer possible to apply for the refund by phone.

Contractors will now need to apply online here or, if you are unable to claim online, by post

Related News Articles

HMRC’s New R&D Disclosure Service: What You Need to Know

A new disclosure facility has been introduced to help companies address inaccuracies in historic R&D tax relief claims. Who is affected, and how should you use this facility if necessary? Due to the prevalence of errors and fraudulent claims in R&D tax relief, HMRC has set up a new disclosure facility for overclaimed relief. This…

Private School VAT FAQ

What has Changed? From 1 January 2025, all supplies of education, vocational training, and board & lodge made by a private school will be subject to VAT at the standard rate (20%). The draft legislation defines a private school as a school/institute that provides full-time education for pupils of compulsory school age (and those up…

UPDATE: Fuel Rates for Company Car Drivers

The reimbursement rates for employees using company cars for business travel have been updated as of 1 September 2024. These Advisory Fuel Rates (AFRs), set by HMRC, are revised every quarter to reflect changes in fuel prices. The AFRs specify the maximum amounts that can be reimbursed to employees for business mileage in a company…