Changes to the Construction Industry Scheme (CIS)

Changes to the Construction Industry Scheme (CIS)

Will the changes to the Construction Industry Scheme affect you?

Once the changes take place, you’ll be affected if:

  • Are you a limited company
  • Operating in the construction industry
  • Registered with HMRC under the Construction Industry Scheme (CIS)
  • A subcontractor receiving payments from contractors
  • Tax deducted from these payments at 20%
  • Claiming for these deductions when submitting your Employer Payment Summary (EPS)

What are the changes?

Subcontractors wishing to reclaim CIS reductions via their EPS must include details of their Corporation Tax Unique Taxpayer Reference (CT UTR) number.

The online EPS form will be amended to include an additional field to accommodate this new requirement.

Where reclaims of CIS deductions are included on the EPS, but the subcontractor does not include the CT UTR number, the reclaim will be rejected.

If a taxpayer cannot satisfy the new CT UTR validation but needs to report anything else, they must remove the claim for CIS deductions and resubmit the EPS.

 

When will this happen?

April 2022

 

What do I need to do now?

Make sure you have a CT UTR number now so that it can be included in the EPS return.

If you have lost or cannot find your CT UTR, you can request it from gov.uk

Enter the CT UTR in the new field on the EPS.

Need help?

CIS can be complex and, often, the rules need interpreting for individual situations. If you need help understanding the changes or how CIS works, contact us today.