This Content Was Last Updated on February 9, 2017 by Jessica Garbett
The Income Tax (Construction Industry Scheme) (Amendment) Regulations 2015 amend the Income Tax (Construction Industry Scheme) Regulations 2005 to remove the obligation to file a return in cases where the contractor has not paid any subcontractors in a tax month and also amend the rule that any repayment can only be made to a subcontractor after the end of the tax year in which the deductions were made where the subcontractor is insolvent. The Regulations come into force on 6 April 2015.
A series of changes will be introduced to improve the operation of the Construction Industry Scheme (CIS) making it easier for businesses to access gross payment status, reduce administration burdens and move more transactions online. These include:
- the threshold for the turnover test will be reduced to £100,000 in multiple directorships
- the initial and annual compliance tests will focus on fewer obligations
- the nil return obligation will be amended
- joint ventures where there is already one member with gross status will be allowed
- easier access to gross payment status
- allow an earlier repayment to liquidators in insolvency proceedings
- mandation of filing of CIS returns and online verification.
Article by ACCA In Practice