The CIOT makes a number of key points in response to HMRC's consultation on proposed construction industry scheme changes:
The gross payment status (GPS) test would be strengthened by including VAT, but genuine and minor VAT errors or delays should not exclude an applicant or remove existing GPS status. The proposal here targets HMRC's concern that the current GPS test does not exclude businesses which have committed VAT abuse.
Landlord to tenant payments (to fund work on a building) should be outside the scope of CIS provided they properly derive from the landlord/tenant relationship and that any potential for abuse is evaluated and proportionately addressed.
A non-mandatory CIS grouping arrangement would simplify the administration of CIS for taxpayers and HMRC.
The CIOT makes a number of key points in response to HMRC's consultation on proposed construction industry scheme changes:
The gross payment status (GPS) test would be strengthened by including VAT, but genuine and minor VAT errors or delays should not exclude an applicant or remove existing GPS status. The proposal here targets HMRC's concern that the current GPS test does not exclude businesses which have committed VAT abuse.
Landlord to tenant payments (to fund work on a building) should be outside the scope of CIS provided they properly derive from the landlord/tenant relationship and that any potential for abuse is evaluated and proportionately addressed.
A non-mandatory CIS grouping arrangement would simplify the administration of CIS for taxpayers and HMRC.
