20th January 2022
The construction industry is traditionally regarded as having serious compliance issues. The changes introduced from 6 April 2021 suggest that HMRC remain focused in their compliance approach regarding the construction industry arena.
The onus is on contractors to operate the Construction Industry Scheme (CIS) correctly, yet errors are commonplace. They can prove costly, especially if a subcontractor does not have gross payment status, since the contractor is liable for the additional tax , including any interest and penalties that may be levied by HMRC.
With this in mind, we thought it would be beneficial to provide a brief overview of CIS, why it was introduced, how it has evolved over the years, recent changes and common mistakes contractors make when operating or not operating CIS.
Read the full factsheet here.