Explanatory note
Published 6 January 2026
© Crown copyright 2026
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This publication is available at https://www.gov.uk/government/consultations/construction-industry-scheme-proposed-simplification-and-administrative-amendments/explanatory-note
(This note is not part of the Regulations)
These Regulations amend the Income Tax (Construction Industry Scheme) Regulations 2005 (S.I. 2005/2045) (“the 2005 Regulations”).
Regulation 2(2) inserts regulation 4(9A) and (9B) which require contractors, whose business includes construction operations, to make returns to His Majesty’s Revenue and Customs (“HMRC”) where the contractor has not made any payments to sub-contractors in a tax month (a nil return) unless the contractor notifies HMRC that they will make no payments for the tax month.
Regulations 2(3) amends a reference to regulation 4(10) in regulation 4(12) to ensure that failure to comply with the requirement to file a nil return under new regulation 4(9B) is subject to penalties.
Regulation 2(4) inserts new regulation 24ZA (payments made to public bodies) into the 2005 Regulations which exempts certain payments made to a public body from the definition of a “contract payment” in section 60 of the Finance Act 2004.
A Tax Information and Impact Note covering this instrument will be published on the website at https://www.gov.uk/government/collections/tax-information-and-impact-notes-tiins.