Policy paper

Construction Industry Scheme: tackling fraud

This tax information and impact note is about changes to tackle Construction Industry Scheme fraud.

From:
HM Revenue & Customs
Published
26 November 2025

Documents

Tackling Construction Industry Scheme fraud

HTML

Details

This measure strengthens HMRC’s powers to tackle fraud within the Construction Industry Scheme.

From 6 April 2026, if a business makes or receives a payment that it knew or should have known was connected to fraud, HMRC can:

  • immediately remove Gross Payment Status (GPS)
  • assess the business for the related tax loss
  • charge a penalty of 30%, which can apply to the business or its officers

In addition, those who have GPS removed immediately due to fraud or serious non-compliance will be prevented from reapplying for GPS for a period of 5 years.

Updates to this page

Published 26 November 2025

Sign up for emails or print this page

Related content