HMRC launches a consultation in relation to tackling Construction Industry Scheme abuse 25 March 2020
HMRC has launched a consultation that seeks views on changes to the rules to prevent tax loss through the operation of the Construction Industry Scheme (CIS).
HMRC would like to hear from individuals who work within construction, those who operate within the CIS, and anyone representing construction businesses. HMRC is particularly interested in hearing from sub-contractor employers who set off CIS deductions in-year against their employer liabilities, and from larger contractors at the top of supply chains, who would be most impacted by proposals relating to supply chains. It was announced at Budget 2020, that from April 2021, HMRC will have the power to correct the amount of CIS deductions claimed on a sub-contractor employer’s return, in scenarios where they identify or suspect that inaccurate amounts have been claimed. Other changes include clarifying the law regarding the CIS rules on ‘materials deductions’ and ‘deemed contractors’. The government is also considering whether to introduce measures to improve the information available to HMRC in relation to construction supply chains, and to encourage contractors to undertake supply chain due diligence to support CIS compliance by all parties within a chain.
The consultation seeks input in three key areas:
• Feedback on the measure designed to ensure CIS deductions claimed by employers are permitted only where there is satisfactory evidence to support them, particularly on the implementation of the proposed provision • Other ideas, or rules within the CIS that could be clarified, to minimise misinterpretation and abuse • Feedback on the supply chain measures which are at an early stage of development
The consultation will run for a period of ten weeks, commencing on 19 March 2020 and finishing on 28 May 2020.
CIPP comment
If you have any feedback on any of the topics covered within HMRC’s consultation: Tackling Construction Industry Scheme abuse, then please get in touch with the Policy team, at policy@cipp.org.uk. As always, the voice of our members is of paramount importance to us so we value all of the responses and opinions that we receive.
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HMRC text message scam warning 26 March 2020
The CIPP has received reports of scam text messages that are being circulated, from sources purporting to be HMRC, and advising that, due to the coronavirus outbreak, those targeted are entitled to a tax refund.
The text message contains a link which claims that individuals should follow it, in order to calculate the refund that they are entitled to. The advice is that people should never click on the link, to ensure that their personal details aren’t compromised.
The message appears to originate from contact number +447517309365.
HMRC takes security very seriously and this is an additional reminder that you need to be alert, particularly given current circumstances. If you cannot verify the identity of the person sending the text message, you should not click on any associated links, and refrain from providing any personal details.
The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
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