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(Draft) The Income Tax (Construction Industry Scheme) (Amendment) Regulations 2026

Published 6 January 2026

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This publication is available at https://www.gov.uk/government/consultations/construction-industry-scheme-proposed-simplification-and-administrative-amendments/draft-the-income-tax-construction-industry-scheme-amendment-regulations-2026

The Commissioners for His Majesty’s Revenue and Customs make the following Regulations in exercise of the powers conferred by sections 60(7) and 70(1)(a) and (2)(c) and (d) of the Finance Act 2004([1]) and section 98A(1) of the Taxes Management Act 1970([2]) and now exercisable by them([3]).

1. Citation and commencement

These Regulations may be cited as the Income Tax (Construction Industry Scheme) (Amendment) Regulations 2026 and come into force on 6th April 2026.

2. Amendment of the Income Tax (Construction Industry Scheme) Regulations 2005

(1) The Income Tax (Construction Industry Scheme) Regulations 2005([4]) are amended as follows.

(2) In regulation 4 (monthly returns), after paragraph (9) insert—

  1. “(9A) Subject to paragraph (9B), a nil return must be made by a contractor within paragraph (a) of section 59(1) of the Act to the Commissioners for His Majesty’s Revenue and Customs—

    1. (a) by indicating in a return made under paragraph (1) that no contract payments or payments which would be contract payments but for section 60(4) of the Act were made during the tax month, and

    2. (b) the nil return must be made not later than 14 days after the end of the tax month in which no such payments were made.

    3. (9B) Paragraph (9A) does not apply if the contractor has notified the Commissioners for His Majesty’s Revenue and Customs that they will make no payments under construction contracts for a tax month not later than 14 days before the start of the tax month to which the notification relates.”

(3) In regulation 4(12)(d) for “(10)” substitute “(9A)”.

(4) After regulation 24 (charities) insert—

“24ZA. —Payments made to public bodies

A payment under a construction contract is not a contract payment if the payment is made to a person within any of paragraphs (b) to (k) of section 59(1) of the Act.”

                                                                                                     Name

                                                                                                     Name

DATE   Two of the Commissioners for His Majesty’s Revenue and Customs

([1])    2004 c. 12.

([2])    Section 98A was inserted by section 165 of the Finance Act 1989 (c. 26.) and amended by section 722 of and paragraphs 123 and 138 of Schedule 6 to the Income Tax (Earnings and Pensions) Act 2003 (c. 1.) and paragraph 8 of Schedule 12 to the Finance Act 2004.

([3])    The functions of the Commissioners of Inland Revenue were transferred to the Commissioners for His Majesty’s Revenue and Customs by section 5(1) of the Commissioners for Revenue and Customs Act 2005 (c. 11). Section 50(1) of that Act provides that, in so far as it is appropriate in consequence of section 5, a reference to the Commissioners of Inland Revenue, however expressed, is to be read as a reference to the Commissioners for His Majesty’s Revenue and Customs.

([4])    S.I. 2005/2045; relevant amending instruments are S.I. 2011/2391 and 2015/429.

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