Construction Industry scheme Changes
From 6 April 2016, HMRC abolished monthly paper returns for the Construction Industry Scheme (CIS). All submissions must now be made electronically. So, we’d thought we’d capture the latest Construction Industry Scheme changes all in one place. Read on for all the latest!
To ease the transition, HMRC allowed leniency for the first three months of the tax year. This meant businesses had time to adjust without facing immediate penalties. However, full compliance is now expected.
Future Changes to CIS Verification
From 6 April 2017, subcontractor verification will move to a fully online system. This change aims to streamline the process and improve efficiency.
Until then, businesses can continue verifying subcontractors online or by telephone. The shift to a completely digital system means contractors must ensure they have the right processes in place before the deadline.
What These Changes Mean for Contractors
These Construction Industry Scheme changes mean contractors must:
- Submit monthly CIS returns electronically (paper returns are no longer accepted).
- Prepare for the move to online-only verification of subcontractors by April 2017.
- Ensure compliance to avoid penalties from HMRC.
Adapting to digital systems is crucial to maintaining compliance with CIS regulations. Businesses should review their processes now to avoid last-minute issues.
How We Can Help
Navigating Construction Industry Scheme changes can be challenging. At Lewis Brownlee, we help businesses stay compliant with CIS regulations and HMRC requirements.
If you need support with CIS returns, subcontractor verification, or tax planning, contact us today. Our experts are ready to assist you.