Four new measures affecting the CIS came into force from 6 April 2021, which aim to crack down on tackling labour fraud:

  • HMRC can amend the CIS deductions suffered and reclaimed to an amount matching any evidence they hold;
  • Only where a subcontractor directly incurs the cost of materials is that cost not subject to a CIS deduction;
  • Businesses operating outside the construction sector need to apply the CIS when their total spending on construction exceeds £3m over the past 12 months;
  • Penalties now apply to anyone who exercises influence or control over a person registering for CIS and either encourages that person to make a false statement or does so themselves

Who does the CIS affect and how does it work?

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