Policy paper

Administrative burden impact of the Construction Industry Scheme reform

Updated 5 May 2016

At Autumn Statement 2014, the government announced it would implement improvements to the operation of the Construction Industry Scheme.

From 6 April 2016 legislation has been introduced to improve the administration of the scheme. The changes include:

  • a simpler process for sub-contractors to achieve gross payment status
  • mandatory online filing of monthly returns and subsequent amendments for contractors
  • an improved online verification service for contractors to verify the status of sub-contractors, but this will not be mandatory until April 2017

Overall Impact

There will be a negligible one-off implementation cost for these measures mostly due to sub-contractors opting to apply for gross payment status. The estimated average administrative savings in the first 5 years is £400,000 per annum.