The Government has published its response to the CIS consultation “Improving the operation of the construction industry scheme”. Key recommendations made by our NI Tax Committee feature. Draft secondary legislation for a short technical consultation has also been published.

As recommended by the Northern Ireland Tax Committee, the turnover test will be reduced to £100,000. This will apply from April 2016. In addition, the compliance tests for those applying for gross payment status will be significantly reduced.

In its original response the Institute also reiterated the importance of ensuring that those who are unable to use online means by reason of age, disability, and remoteness of location are exempted from mandatory online filing and verification of subcontractors. This was not included in the original consultation, however the consultation outcome confirms that those unable to file an online for the reasons previously outlined will now be offered alternative filing arrangements.

Furthermore, mandatory on-line verification of sub-contractors which would have removed telephone verification will not proceed from the outset but will be kept under review in recognition of concerns regarding withdrawal of the telephone service. An online appeals service for CIS penalties will be introduced but this will be independent of online filing. These were both specific concerns of the Committee.