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  • Shepherd Partnership

Construction Industry Scheme (CIS) changes from 6 April 2024




Gross Payment Status (GPS) compliance test

 

Compliance with VAT filing and payment obligations is to be added to the compliance test for gaining and retaining GPS.

 

In line with other taxes minor failures will be overlooked: 

 

  • 3 late submissions of VAT returns — up to 28 days late  

  • any late payment of VAT where the amount is under £100  

  • 3 late payments of VAT liability of £100 or more — up to 14 days late 

 

Existing appeal rights will apply and GPS will not be removed where there is a reasonable excuse for any compliance failures. 

 

HMRC will also bring forward the first review of compliance from 1 year after application to just 6 months. After that it will revert to an annual review.

 

Fraudulent returns and information

 

The grounds on which HMRC can immediately cancel GPS in cases of fraud will be extended to include VAT, Corporation Tax Self Assessment), Income Tax Self Assessment and Pay As You Earn but the appeal rights will continue apply.

 

Landlord to tenant payments

 

Most landlord to tenant payments for construction work will no longer be within the scope of the CIS, subject to certain qualifying conditions.  

 

Subcontractor registrations and applications for GPS

 

A new digital form for subcontractor registration and GPS applications will be introduced. Supporting evidence can be uploaded and there will be the ability to save and return to applications. 


From this time, subcontractors will no longer be able to register for the CIS or apply for GPS over the telephone, unless they are digitally excluded.

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