CIS Compliance

Proposals to Reduce the CIS Tax Compliance Burden on Construction Sector.
The Chartered Institute of Taxation (CIOT) has published its response to HMRC’s proposals to introduce mandatory online CIS filing for contractors, amend the gross payment status turnover and compliance tests and improve the sub-contractor verification process. It welcomes the proposals aimed at reducing the burdens on the construction sector, which it says tends to get a ‘worse deal from the tax system than any other trade’, with ‘more reporting, more potential to suffer penalties and a higher level of compliance expected than any other group.’

1. It also agrees that online filing should be the default option for CIS returns, although this should be subject to safeguards.
2. In addition, it welcomes proposals to:
   • •reduce the number of compliance tests;
   • introduce an online appeal system and remove the statutory obligation to file a ‘nil return’;
   • develop an integrated online account;
   • improve the online verification service, although it does not agree with mandating online verification as the sole means of verifying a sub-contractor’s status.

Disclaimer - All information in this post was correct at time of writing.