Construction Industry Scheme reform

This consultation considers whether it would be appropriate to add VAT to the list of taxes HMRC must consider when undertaking the statutory compliance test for receiving or keeping Gross Payment Status (GPS). It seeks views on how adding VAT could be given effect and the consequences for those affected.

In addition, the consultation sets out 2 areas where the scheme may be causing unnecessary administrative burdens: landlord/tenant payments; and multiple reporting requirements by some groups. It seeks views on the scope and impact of those burdens, and the government’s proposals for removing or reducing them. The consultation also invites views on further areas for simplification of the scheme where it may be causing unnecessary administrative burdens.