CIS changes
HMRC announced they were making some minor changes to the CIS scheme from 6 April 2024, in that VAT failures are now counted when looking at whether a firm qualifies for gross payment status.
In line with other taxes, minor failures will not count towards gross payment disqualification. “Minor failures” are:
- 3 late submissions of up to 28 days for VAT returns
- a late payment of less than £100 in VAT
- 3 late payments of up to 14 days of VAT liability (of £100 or more)
The same appeal rights and reasonable excuse provisions apply to VAT failures as to other taxes.
Other changes that were introduced at the same time:
- HMRC is bringing forward the first review of compliance from 12 months after application to 6 months.
- Gross payment status can be immediately removed in cases of fraud.
- Most landlord/tenant construction payments are now outside of CIS.
- Subcontractor registration will eventually be moved wholly online, except for the digitally excluded.
Finally, HMRC announced a significant change with regards to limited company contractors obtaining a CIS refund, and it is now no longer possible to apply for the refund by phone.
Contractors will now need to apply online here or, if you are unable to claim online, by post
Related News Articles
Advanced Notification – to opt in, or not to opt in, THAT is the question?
First, let’s recap on the rules. If a client wants to make a claim for Research and Development (R&D) tax relief or expenditure credit for accounting periods beginning on or after 1 April 2023, we need to submit a claim notification form if: The client is claiming for the first time; or The last claim…
Pre-trading and Pre-incorporation Expenditure
Pre-Trading Expenditure The scope of pre-trading expenditure for sole traders is covered in s57 Income Tax (Trading and Other Income) Act 2005 (“ITTOIA05”) and s61 of the Corporation Tax Act 2009 (“CTA09”) for companies. The legislation is applicable to revenue expenditure which is incurred by a trader 7 years prior to the commencement of trade.…
The New Foreign Income and Gains Regime
The old Non-UK Domicile rules are coming to a welcome end on 5th April 2025. The replacement regime focuses on those that have settled in the UK and become Long-Term Resident. From 6 April 2025 the new 4 year foreign income and gains (“FIG”) regime applies to individuals who become UK tax resident after having…