HMRC is consulting on changes to the Construction Industry Scheme, by looking at ways of administering the scheme more efficiently.
The following changes have been proposed:
- Introducing a mandatory monthly online filing requirement;
- Improving the online verification process, allowing contractors to search for previous verifications and more than one subcontractor at a time;
- Simplifying the compliance tests to reduce the number of businesses that lose their gross payment status; and
- Lowering the threshold for the upper limit of the turnover test to help more established businesses with multiple partners or directors qualify for gross payment status. The proposed new upper threshold could fall from £200,000 to £150,000, £120,000 or £100,000. The new threshold would also apply to closely held companies.
The consultation closes on 22 September 2014.