Policy paper

Simplifying and improving Construction Industry Scheme administration

This tax information and impact note is about simplifying and improving the administration of the Construction Industry Scheme (CIS).

• From: HM Revenue & Customs
• Published: 13 March 2026

Documents

Simplification and administrative improvements to the Construction Industry Scheme

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Details

The purpose of these measures is to simplify and improve the administration of the Construction Industry Scheme (CIS) by:

• exempting payments made to local authorities or public bodies from the scope of CIS
• requiring construction contractors to file a nil return when they have not paid any subcontractors in a month, unless they’ve notified HMRC in advance that they will not make any such payments

The measures will take effect from 6 April 2026.

Published 13 March 2026